Memcoins on the second layer (L2) Base network are gaining more and more popularity. They also demonstrate profitable potential.
Lookonchain analysts noticed to a lucky trader who earned $3.4 million on a new “meme” coin on the Base network. Over the past month, the value of this token has skyrocketed by more than 2,300%.
Memecoin Mania on Base
The adventure began with the purchase of 38 Ethereum (ETH) in the amount of $113 thousand. The trader spent almost all of these tokens on 85.36 million Degen (DEGEN) – a new and already very well-known memcoin based on Base. This number of coins cost the user 31.6 ETH, or $108 thousand, and the transaction took place on March 2.
Almost a month later, on March 30, the trader sold 72.73 million DEGEN tokens for $2.83 million in USD Coin (USDC). He kept another 12.6 million DEGEN for himself, which at the current exchange rate is valued at $600 thousand. Therefore, the lucky winner’s total profit ultimately amounted to $3.4 million.
A graph of the cost of the DEGEN token, showing at what levels the trader bought memcoin and at what levels he sold it. Source: X
New star on Base
The Degen project's memcoin was launched in early 2024 and since then its popularity has only been growing, especially on sites developed on the basis of the Farcaster decentralized network. Users receive points every time they interact on the site.
According to CoinGecko, over the past 30 days, the price of DEGEN has increased by 2,300%, and since its release – by more than 209,000%. Currently, the “meme” coin is trading at $0.04772.
DEGEN's daily trading volume is estimated at $133 million, and its capitalization at $590.7 million.
Trend change
In recent weeks, the market has seen a shift in activity from Solana-based memcoins to similar assets on Base. Thus, analyst Rekt Fencer, who previously bet on “meme” coins in the SOL ecosystem, now supports tokens on the network from the Coinbase crypto exchange.
Memcoins are one of the leaders of the entire crypto market, the hype for which is unlikely to end, according to analysts. According to Ethereum co-founder Vitalik Buterin, they represent a unique asset class with enormous potential benefits for the entire society.
According to the programmer’s thoughts, “meme” coins can be used for good. For example, for charity and supporting significant initiatives. In addition, Buterin also proposes a more fun and inclusive approach through “Robin Hood games.” Such games aim to redistribute wealth towards lower-income players.
Source: Cryptocurrency
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