MOON and BRICKS, two Reddit tokens, have risen in value this month, aided in part by a debut on the Layer 2 solution Arbitrum. Important Points to Remember
- MOON has increased by 500% this month as the demand for Reddit community tokens surges.
- The token's recent introduction on Arbitrum, which allows for use across numerous dApps on Layer 2, has acted as a bullish trigger.
- Another Reddit token, BRICKS, has seen a significant increase in value this month.
After transferring to Arbitrum, MOON, the community token of the cryptoCurrency subreddit, has seen tremendous price activity.
Reddit stated last week that it would transfer its ERC-20 reward tokens to Arbitrum, a prominent Ethereum Layer 2 scaling solution.
MOON, the native ERC-20 token utilized as community points on /r/CryptoCurrency, was harmed by the migration.
Users that provide great posts and comments are awarded with the token on a monthly basis. The coins are added to Reddit's own Ethereum wallets on the Arbitrum network automatically.
MOON tokens were distributed on the Ethereum test network Rinkeby prior to the Arbitrum transfer. They could be traded on HoneySwap after being bridged from testnet to the xDai sidechain. However, there was no direct connectivity with Ethereum, and because it was a testnet token, it had minimal value.
MOON may now be exchanged in rapid transactions with low gas fees while using Ethereum's security thanks to its launch on Arbitrum. It also means that Reddit users can now use their tokens in Arbitrum dApps and settle them more quickly on the Ethereum mainnet.
MOON tokens gain value with exposure to the Ethereum mainnet. The Arbitrum migration news has been quite encouraging for the token in this aspect.
Despite the fact that the broader crypto market has remained fairly unchanged over the last month, the MOON price has increased by more than 500%. According to CoinGecko, each MOON token is currently worth $0.25. In the previous week, the price has doubled.
One thing to keep in mind is that the pricing only applies to the old xDai tokens, as there is no DEX functionality available on Arbitrum currently. As a result, while MOON is showing bullish strength, poor trading liquidity on DEXs may be a reason driving the spike.
Aside from price fluctuations, MOON has witnessed a boost in adoption over the past year. On r/CryptoCurrency in July 2021, 26,443 users claimed the token in their wallets, more than ten times the number since its creation in May 2020.
MOON is mostly used as a community reward token, but it also has meme-like characteristics. Some community members have referred to the token as a "better memecoin" compared to crypto's original meme currency, Dogecoin, because of its growing popularity on Reddit and limited total availability. This claim is based on MOON's restricted quantity of 250 million tokens and widespread adoption on Reddit's largest cryptocurrency community.
The recent Arbitrum update has had an impact on a number of ERC-20 Reddit tokens, including MOON. The other is BRICKS, which is popular on the subreddit r/FortniteBR. It has also seen a price increase of almost 222 percent this month.
While Reddit tokens are still in their infancy, they may find their way into Arbitrum-based dApps in areas like DeFi, NFTs, and gaming.
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