Fxcrypt
Ahead of the upcoming launch of Celer’s bidirectional bridging feature on March 20, there has been a surge in the value of Moons (MOON), the native cryptocurrency of Reddit’s r/CryptoCurrency community.
- The MOON token on the r/CryptoCurrency subreddit reached an all-time high of 84 cents over the weekend.
- Celer, an interoperability protocol, has opted to support MOON, enabling token holders to bridge their coins to Arbitrum One. The bridging feature is set to debut on March 20.
- Reddit’s IPO, scheduled for March 21, has garnered significant attention, being oversubscribed four to five times, according to Reuters.
Moons are ERC-20 tokens awarded to users as rewards for their contributions to the r/CryptoCurrency subreddit through posts or comments. These tokens can be freely traded, tipped, or utilized within the community.
Last month, r/CryptoCurrency announced that Celer would be supporting MOON. This decision has led to heightened anticipation, particularly with the imminent launch of the bridge, which will enable users to transfer MOON tokens between Arbitrum Nova and Arbitrum One without the typical one-week waiting period associated with Arbitrum’s official bridge.
Arbitrum operates two layers on the Ethereum blockchain: Arbitrum One and Arbitrum Nova. While Arbitrum One is tailored for DeFi trading activities, Arbitrum Nova focuses on reducing transaction costs for high-throughput decentralized applications.
At present, MOON is listed on Arbitrum Nova. Following the launch of the bridge, MOON holders will have the flexibility to bridge their coins between Nova and One. Arbitrum One currently boasts higher liquidity, with $3.43 billion worth of cryptocurrencies locked in its DeFi ecosystem, compared to Arbitrum Nova’s $2.09 million.
The decision to bridge MOON to Arbitrum One aims to expose the cryptocurrency to a wider array of DeFi applications while mitigating the risk of potential shutdowns, as outlined in r/CryptoCurrency’s official announcement. Although users who bridge MOON to Arbitrum One will retain voting power, distribution and tipping of the token will continue on Nova due to its lower transaction costs.
Moreover, the excitement surrounding Reddit’s impending IPO may have contributed to increased interest in the community token. Reuters reports that the IPO is significantly oversubscribed, hinting at a potential valuation of $6.5 billion for the social media platform’s shares upon debut.
Elijah Idowu
