The meme coin market has recently experienced a 4.53% rise in volume, and this resurgence has had a significant impact on the price chart of Sponge token ($SPONGE). The introduction of a new staking mechanism by Sponge token has triggered a bullish trend in its price. This renewed interest in the coin can be attributed to its undervalued proposition and the attractive entry price it offers to investors. The possibility of doubling down due to substantial staking returns has also attracted fresh capital, leading to a 10.99% increase in the $SPONGE price over the past month.
The Sponge token staking mechanism has been highly anticipated by over 11,000 bag-holders, who have been eagerly awaiting the launch of staking rewards. The staking APY % of Sponge token is set at a variable rate that adjusts in real-time based on the quantity of $SPONGE staked through the dashboard. Despite the variability, analysts predict that the staking APY will remain high, offering consistent market-beating returns. The initial launch of staking offers an impressive 1578% APY, which serves as an enticing incentive for early Sponge holders to stake their bags.
The staking period for $SPONGE holders provides three tiered lock-up options. The first option offers a 1.5x APY return for a 30-day lock-up, while the second option offers a 2x APY return for a 60-day lock-up period. The third and most lucrative option provides 3x APY returns for a 90-day lock-up. Additionally, holders have the flexibility to opt-out and receive the standard APY staking return with a minimum lock-up period of 7 days. The Sponge token staking dashboard provides easy access for $SPONGE holders to utilize this new staking feature.
Compared to the second-ranked meme coin by market cap, Shiba Inu token, $SPONGE has been rapidly gaining traction as an outperforming asset. While both coins experienced price increases during the wider resurgence of meme coin valuations, $SPONGE managed to establish a well-defended support level above $0.00011. Unlike Shiba Inu, $SPONGE has remained bullish and avoided volatile retracement moves. This has led to a higher percentile increase in trade volume for $SPONGE, showcasing positive market sentiment towards the Sponge project.
With a relatively low market cap of $2.78 million, $SPONGE is considered undervalued when compared to similar meme coin alternatives such as Tamadoge ($11 million market cap) and Wall Street Memes ($38 million market cap). Analysts suggest that $SPONGE could potentially achieve a 4x to 14x return from its current valuation. This undervalued status has already attracted attention, with a recent video highlighting a 17% surge in $SPONGE volume. The introduction of staking has set the project on a positive trajectory, leading to rumors of upcoming Tier-1 CEX listings and a potential airdrop for dedicated holders. There is also speculation about the introduction of an innovative burn mechanism to reduce the supply of $SPONGE, further enhancing its price potential. Additionally, the possibility of partnerships with other growing meme coins in the space could pave the way for new product launches that support the price of $SPONGE.
The Sponge token has proven to be an exciting player in the meme coin market, especially with its new staking mechanism. The positive market sentiment surrounding the project, along with its relatively low market cap, positions $SPONGE for potential price growth. However, it is essential to remember that investing in crypto carries high risk, and this article is for informational purposes only. Keep an eye on the Sponge token Discord channel, Telegram group, and official accounts for the latest updates on the project’s developments. As Sponge token’s price stands poised, investors should evaluate the opportunities and risks involved before making any investment decisions.