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Sponge, a meme coin with a low market capitalization of $23.79 million, is up 470% this month.
This surge in value is attributed to the announcement that the Sponge team will be bridging the coin to Sponge V2, a next-generation meme coin with real utility.
The anticipated release of Sponge V2 has generated excitement among investors, leading to a spike in demand for the original Sponge token.
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However, experts caution that while there may be further gains for Sponge in the short term, investors should exercise caution due to the inherent risks associated with meme coins.
Sponge is currently available for trading on exchanges such as Uniswap, Gate.io, and MEXC. However, the Sponge V1 token will no longer be supported after the launch of Sponge V2.
V1 holders can stake their tokens in the Sponge V2 staking contract on the project’s website, and new buyers can acquire Sponge V2 directly from the website using the buy and stake option.
Staking rewards for Sponge V1 tokens will be automatically accrued until Sponge V2 launches. Once Sponge V2 is live, stakers will receive additional yield based on the variable staking APY.
Newfound utility and robust track record drive excitement
The second rendition of Sponge features a new utility through a play-to-earn (P2E) racing game, where users can buy credits with SPONGEV2 to earn more rewards.
Sponge V2 offers several utility features, including a staking mechanism that rewards holders with a high annual percentage yield (APY) of 287%.
However, this APY will gradually decrease as the staking pool grows. To ensure continued profitability for stakers, Sponge V2 has implemented a built-in minimum yield of 40% for the next four years.
The introduction of utility features such as staking has proven to be an effective strategy for increasing the value of cryptocurrencies.
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By providing a steady and predictable demand stream, utility can help to attract and retain investors.
Sponge V2’s track record of price appreciation and its meme coin appeal have generated speculation that the coin is poised for another parabolic run.
After launching in May 2023, Sponge surged to a $100 million market cap, netting early buyers a 100x ROI. It also secured listings on over ten exchanges and amassed 13K holders and 30K social media followers.
Due to a significant lack of transparency, the meme coin industry is known for being high-risk. However, Sponge V2 can be a refreshing solution with a track record and proof that the team is competent and actionable.
Analysts back Sponge V2
So far, leading market analysts have been bullish on Sponge.
In a recent video, analyst Crypto Gains said the token may rally.
YouTuber ClayBro is also optimistic about Sponge V2 going forward.
Beyond finding coverage in YouTube, leading publications like crypto.news have featured the project.
The ongoing Sponge V2 “buy-and-stake” campaign has raised over $5.3 million in one month. Meanwhile, the Sponge V1 token is in green, up 4.7% in the past 24 hours, 19.62% this week, and 472% this month.
Utility-based meme coin gaining prominence
Several types of cryptocurrencies are on the market, including meme coins and utility-based projects.
Utility-based projects have outperformed the market average, with some Solana-based projects seeing significant gains.
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Meanwhile, Dogecoin has also grown due to speculation around a potential integration with Elon Musk’s X Payments.
Sponge’s new utility offers a unique benefit that may help the project gain traction and advance its narrative in the market.
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