The meme coin market continues to see increased capital inflows, with the Sponge token (SPONGE) price exploding over 340% in the past week.
Capitalizing on the meme coin trend, this ERC-20 token aims to honor the beloved SpongeBob SquarePants character hilariously.
But can this cartoon-inspired token sustain its enormous growth, or will profit-taking bring SPONGE back down to earth?
SPONGE Price Explodes as Investor Hype Ramps Up
SPONGE is now trading around the $0.00051 level, up almost 400% over the previous 30 days.
Meanwhile, the token’s market cap has grown to $10.9 million, accompanied by a significant trading volume of $1.5 million in SPONGE transactions over the past 24 hours.
According to data from Etherscan.io, the number of unique wallet addresses holding SPONGE has also soared, reaching 11,900.
The buzz extends to social media platforms like Twitter, where traders are actively discussing SPONGE’s potential – with some even likening it to “the new PEPE.”
However, such vertical growth is rarely sustainable, and questions are being raised about whether SPONGE can retain its gains and continue.
Regardless, the recent hype highlights the ongoing interest in SPONGE, suggesting that the token’s lifecycle may have more developments in store.
Token Airdrop Fuels Buzz & Kickstarts Trading Activity
Sponge token’s incredible rise has been fueled mainly by the hype surrounding a recent airdrop for SPONGE holders.
On November 7, the SPONGE team announced that an airdrop of 833 million tokens, worth around $100,000 at the time, had been distributed to 747 lucky winners.
The team tweeted a thank you to all who participated and said, “Here’s to absorbing more gains together!”
This free token giveaway generated substantial buzz and speculation around SPONGE, which had been trading sideways since mid-June.
Word of the SPONGE airdrop spread rapidly across social media, helping kickstart trading activity and liquidity.
Thus, by leveraging this airdrop initiative, SPONGE was able to harness the power of its community and bring the token back into the mainstream consciousness.
This airdrop also helped bring attention to SPONGE’s staking protocol, which currently offers yields of over 330% per year.
More than 256 million SPONGE tokens have been pledged to the staking pool – representing approximately 1% of the circulating supply.
SPONGE Price Prediction – Can the Meme Coin Sustain Its Rally?
Coming off the heels of its incredible rally, speculation is running rampant regarding where SPONGE’s price could be headed next.
Many believe the token could see additional near-term gains if the hype is sustained.
Some optimistic traders project SPONGE could ride the current momentum and reach the pivotal $0.0010 level.
SPONGE hasn’t traded at this level since May 9, yet given its psychological importance, token holders believe that price could be drawn to it.
Should SPONGE reach this area, or even higher, there could be scope for the token to be picked up by Tier-1 centralized exchanges (CEXs) like Binance or Coinbase.
Both of these exchanges recently listed Memecoin (MEME) after it surged following its “firesale” – and SPONGE holders will be hoping that a similar pattern emerges here.
However, given SPONGE’s sharp rise, there’s also the risk of profit-taking, which could prompt the token to retrace.
This scenario isn’t uncommon in the meme coin space – yet it can sometimes offer a second buying opportunity for those who missed the initial pump.
Time will tell where SPONGE token could end up in the days and weeks ahead, but investors will be watching closely as the token navigates this critical point in its hype cycle.
