Bonk and Gorilla fell more than 10% as the new Meme Coin Sponge V2 emerged as a notable offering.

Despite the rise of many meme coins, two of this month’s most popular projects, Bonk and Gorilla, saw a selloff today.

However, traders are very optimistic about the launch of the new Sponge V2, which market participants can acquire through a Stake-to-Earn mechanism.

Bonk and Gorilla lose momentum after a strong uptrend

After Bonk was listed on Binance and Coinbase earlier this week, the project saw a huge surge.

The price 7 days ago was $0.00001019, but immediately after the announcement, it more than tripled to a record high of $0.00003419, bringing the market capitalization to over $2 billion.

However, subsequent selling brought the price down to $0.0001768, down more than 10% from the price 24 hours earlier.

This formed a bearish price chart pattern with lower lows and lower highs after the ATH.

Analyst IncomeSharks noted that Bonk “continues to break support.”

“When a meme loses momentum, it can easily fall apart. “The upward trend is good, but the downward trend can be painful if you are greedy without realizing the benefits,” he said.

However, prominent analyst Marius.capital believes Bonk will make a second attempt.

“If #Btc holds after Christmas, I think $Bonk will make a second rally towards 0.00004 in a few days,” Marius said in a recent tweet.

He then explained that Shiba Inu has gone through a similar trajectory in 2021, selling “before the full transfer” following its Binance and Coinbase listings.

The project, which moved to Gorilla, rose to prominence in November and appeared several times at the top of CoinMarketCap’s hot list.

After the initial rise, prices fell but then started to bounce back. However, it peaked at $0.018 this morning and then began to decline.

It is currently trading at $0.013, down 27% from its daily high.

Nonetheless, the project has re-emerged on CoinMarketCap’s trending list, currently ranked third behind Bonk and Injective.

The reason for its popularity is that the famous exchange Gate.io announced yesterday that it would list the token.

This is the fourth CEX to list Gorilla, following MEXC, BitMart, and ExMarkets.

But while Bonk and Gorilla are experiencing bearish momentum, new meme coin Sponge V2 is receiving massive hype after its launch was announced on Monday.

Analyst Backstakes-to-Bridge Sponge V2 to 100X

Sponge V2 is a new version of the iconic Sponge token that rose to prominence in May amid the rise of Pepe and the widespread meme coin craze.

The original Sponge token reached a massive market cap of $100 million at its peak, multiplying the net proceeds for early investors by 100 times, with over 13,000 holders and listings on over 10 exchanges.

Moreover, the project generated huge social hype, amassing over 30,000 followers on launch day. However, the team expects to continue this momentum with a strong launch of Sponge V2.

This transformation includes new utilities and improved token economics. While the original Sponge was simply an homage to SpongeBob SquarePants, Sponge V2 features an immersive peer-to-peer racing game that allows users to earn cryptocurrency while increasing the utility of $SPONGEV2.

This newly discovered utility, along with its successful track record, suggests notable upside potential. Therefore, YouTuber Crypto World Daily believes that it could be 100x, and Dutch YouTuber Corné Marchand is also optimistic and predicts that it could be 100x.

But the interesting thing about Sponge V2 is that it is not yet available for purchase on exchanges. Those looking to acquire them will need to visit the Sponge.vip website to purchase and stake Sponge, while existing Sponge V1 holders can stake their tokens from the V2 dashboard.

Once the staking phase is complete, users can start using Sponge V2.