Traders in the cryptocurrency market have recently made significant profits from small-cap memecoins on the BNB Chain, indicating a fresh influx of speculative capital energizing the current market cycle.
One standout investor is trader “0xd0a2,” who transformed an initial investment of $3,500 into $7.9 million, achieving a remarkable 2,260-fold return in just three days, as reported by Lookonchain, a blockchain intelligence platform.
Another trader, “hexiecs,” increased a $360,000 investment to over $5.5 million by buying into the newly launched “4” memecoin, which skyrocketed in value following a post from Changpeng Zhao, the co-founder and former CEO of Binance.
Additional speculators joined in, including trader “brc20niubi,” who turned a $730,000 investment into $5.4 million, yielding a 1,200-fold return, according to Lookonchain.
This surge in activity followed a trade earlier in the week when the wallet “0x872” gained nearly $2 million in profits within hours after investing just $3,000 in the 4 token. The trader achieved a 650-fold return after Zhao reshared a post about the token to his 8.9 million X followers on October 1.
Originating after a phishing attack on the BNB Chain, the 4 token saw the hacker reportedly net only $4,000 before the community turned the incident into a meme.
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Traders awaken to BNB Chain potential
The increase in trading activity on the blockchain has attracted attention from industry experts, including Zhao, who described it as “BNB meme szn,” a trend he said he “didn’t anticipate at all.”
Marwan Kawadri, DeFi lead and head of EMEA at BNB Chain, noted that one of the primary reasons for the growing investor interest is the acknowledgment of BNB Chain’s potential in digital asset trading.
“BNB Chain has historically been strong in DeFi, but it’s currently becoming the core of onchain trading,” Kawadri stated, referencing record levels in active addresses and decentralized exchange (DEX) trading volumes, adding:
“What you’re seeing with ‘BNB meme szn’ is the market recognizing that BNB Chain has become the leading ecosystem for trading.”
New cryptocurrency trends seem to proliferate more rapidly on the blockchain due to the presence of a “trading culture” within the community, Kawadri explained.
Related: ‘Diamond hand’ investor turns $1K into $1M as BNB tops $1,000
Highly successful traders, referred to as “smart money” traders on Nansen’s blockchain intelligence platform, have also been focusing on BNB-native memecoins.
The three largest cryptocurrencies acquired by smart money traders were all native to BNB, as highlighted by Nansen data, showcasing the 24-hour inflow of these tokens.
As of Tuesday, over 100,000 onchain traders had invested in the new BNB-native memecoins, with approximately 70% reporting profits at that time, according to Bubblemaps, a blockchain data visualization platform.
Among the 100,000 traders, one particular address recorded over $10 million in profits, with 40 others exceeding $1 million, and an additional 900 traders making over $100,000 in profit.
Memecoins are among the riskiest digital assets, as they possess no intrinsic value and depend entirely on social sentiment for traction.
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