Reddit's BRICK Token Sees Over 100% Surge Following Two-Month Decline
Trading pairs linked to Bricks are displaying indications of low liquidity, with Kraken recording a 2% market depth, where both buy and sell orders are limited to $2,500.
Bricks (BRICK), the intrinsic token of Reddit's Fortnite community, has undergone a notable surge of 110% within the past 24 hours. This substantial increase follows a period of decline, wherein it suffered a depreciation of over 80% of its value in the last two months.
The majority of the trading action unfolded on Kraken, contributing to an aggregate figure encompassing all exchanges, which came close to hitting the $750,000 mark. This represents an astonishing 800% upswing in comparison to the preceding 24-hour period, as outlined by CoinMarketCap.
It's crucial to highlight that the sudden upswing in price currently lacks a distinct catalyst. This surge runs counter to the broader trend within the cryptocurrency market, wherein Bitcoin (BTC) saw a dip below $27,000 on Wednesday.
Initially disbursed to engaged members of the Fortnite subreddit, Bricks functions as an ERC-20 token. Its valuation witnessed a significant upswing in August, aligning with the escalating enthusiasm surrounding other Reddit community tokens, such as r/cryptocurrency's Moons (MOON).
Despite the recent surge, liquidity remains relatively scarce across all exchanges. On Kraken, the 2% market depth equates to roughly $2,500 for both buy and sell orders. Market depth acts as a metric for evaluating the amount of capital necessary to initiate a shift in an asset's price.
This restricted liquidity in an asset that has undergone substantial growth introduces a potential hazard for traders. It implies that the price could potentially undergo a steep decline with minimal exertion, conceivably leaving those who entered the market at the recent high in a precarious situation.
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