ME, has been very popular in Binance Square recently, and of course it has also been criticized. From the high point of 8U, it was halved to 4U in two days. Anyone who sees this will have to say: what a sickle.
However, there are still some die-hard fans in the market who are confident that ME will increase 10 times from the current level to 40U. So which is right and which is wrong? Let's analyze it.
1. Token Introduction
Magic Eden is an NFT trading market that supports multiple chains. As the official token of Magic Eden, ME will represent the largest on-chain user community, and users can earn ME by trading all assets on all chains.
The basic situation of the token is as follows:
2. Popularity Analysis
With the title of the first DEX for Bitcoin, it has been eagerly launched by major exchanges such as Binance, OK, and Bitget, which is also a recognition of its strength. ME has a monopolistic position in the Bitcoin NFT ecosystem and also holds a monopolistic status in the Runes token business.
From the perspective of Bitcoin players, it is not an exaggeration to say that Magic Eden is the most promising project in the Bitcoin ecosystem, so the value of ME should be 'To the moon'. However, it is well known that the Bitcoin ecosystem is still quite average, with the top 10 NFT projects by total market cap being nine ETH-based, and only the tenth being BTC-based. This may limit ME's room for imagination.
3. K-Line Technical Analysis
ME has only recently been listed on mainstream exchanges, and technical analysis is not very meaningful. Overall, ME is still in a downward channel. Although trading volume has contracted, there are no signs of a stop in the decline, and it may need to hold the $4 level first before there are opportunities for an increase.
4. Top Prediction
There are two directions. First, as the hottest project in the BTC ecosystem, it should at least enter the top 50 by market cap. Currently, the 50th is OKB at $3.26 billion, meaning ME still has a potential increase of 485%;
The second direction is based on ME's initial circulating supply, token distribution, and profitability. The optimistic expectation from the community is to reach $40. Therefore, ME's market cap ranking may reach around 35, and the 35th is currently also a platform token: Bitget's platform token BGB. Undoubtedly, the current strength of OKX and Bitget is far greater than that of Magic Eden, so this possibility is relatively small in the short term.
Of course, if the overall bull market rises, it may push ME to $40, but this target is too ambitious in the short term.
5. Suitable Investor Groups
Suitable for investors with assets in A4—A6, the overall risk-reward ratio is moderate.
6. Comprehensive Recommendation Index
3.5 Stars ⭐️, small funds for large returns, but be cautious of risks; if there is a subsequent pullback, orders can be placed around 2.4-3.2.
Risk Disclaimer: This content is for reference only and does not constitute investment advice. The cryptocurrency market has risks; investment requires caution.