• Home
  • Cryptocurrency
  • Reddit's BRICK Token Sees Over 100% Surge Following Two-Month Decline

Reddit's BRICK Token Sees Over 100% Surge Following Two-Month Decline

Oct 13, 2023 at 10:08 am

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.

Read more: Epic Games' Metaverse Ambitions Hit a Roadblock: Layoffs Loom as Expenses Surpass Revenue

Related News

Sign up for daily crypto news in your inbox

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.