Solana-based NFT marketplace Magic Eden’s new native token $ME is seeing substantial selling pressure and is currently down 70% from Wednesday’s all-time high.
$ME’s fully diluted valuation (FDV), which soared to $15 billion minutes after launch, is now down to just $5.1 billion.
Most cryptocurrencies with a high-profile airdrop campaign see a significant pullback after claims go live as the drop winners lock in their profits. This often presents excellent buy-the-dip opportunities. However, the recent trend and concerns regarding Magic Eden’s wallet security features could make $ME a token to steer clear of.
Some smart money investors are already pivoting to other utility coins. For instance, Best Wallet, a top crypto wallet brand, will soon launch its native token, the Best Wallet Token ($BEST).
The new token has already raised $3.5 million in its ICO and is viewed by some as the next 10x crypto.
Time To Buy The Dip On Magic Eden Token?
The Magic Eden price reached an all-time high of $17 just minutes after the token went live.
The rally was fueled by Tier-1 exchange listings as Binance, Coinbase and the top South Korean exchange Upbit rushed to onboard the token on their platforms. Bithumb and OKX also launched the token soon after.
WOW
— tobi (@tobific) December 11, 2024
Someone farmed 1350 wallets for @MagicEden airdrop & got 400,000 $ME
Currently worth ~$2.05M sent to Binance
Respect 🫡 pic.twitter.com/B3r13EK8OP
With 12.5% of the total $ME token supply allocated towards it, the airdrop’s value surpassed the $2 billion mark at its all-time high. CoinGecko’s latest report suggests that Magic Eden’s airdrop is the third-largest free distribution token event after Uniswap and ApeCoin.
However, the token price plummeted soon after the claims went live. $ME is currently trading at just $5.12, with a $5.1 billion fully diluted valuation, down 70% from its peak.
Crypto analyst Peddy reveals that the Magic Eden price crash was largely due to the airdrop claims.
As I mentioned, I expected most of it to be sell-pressure and thats what happened.
— peddy (@peddy2612) December 11, 2024
Claiming spiked yesterday at launch time and then decreased dramatically. pic.twitter.com/Kbu51R9hUO
For instance, prominent crypto trader Sam Belfort received $3 million worth of $ME airdrop. Similarly, another airdrop farmer received 400,000 $ME coins, which he sent to Binance to secure his profits.
With the token price now consolidating near the $5 mark, sidelined investors are wondering whether it is worth buying the dip on Magic Eden. However, they must exercise caution.
WOW
— tobi (@tobific) December 11, 2024
Someone farmed 1350 wallets for @MagicEden airdrop & got 400,000 $ME
Currently worth ~$2.05M sent to Binance
Respect 🫡 pic.twitter.com/B3r13EK8OP
For starters, the airdrop selling pressure isn’t over just yet. As per Magic Eden Foundation’s X post on Thursday, only 75% of the airdropped coins have been claimed. Farmers still have until February 1st, 2025 to claim their coins.
Moreover, crypto news outlet Coindesk has raised security concerns regarding Magic Eden’s wallet security, a FUD which could result in a much larger correction.
The fact that airdrop claimers had to download Magic Eden’s wallet drew significant criticism from the Web3 security community. Coindesk’s report also cites an unnamed industry source which raised user privacy concerns associated with the wallets.
Perhaps most importantly, cryptocurrencies with high-profile airdrop campaigns have struggled to recover to their all-time highs in this bull market, as evident by Notcoin and Movement coin’s price charts.
Some analysts are bullish on the Magic Eden token price in the long term – KoroushAK for example – but smart money investors are also pivoting to other utility coins that are yet to go parabolic and could potentially offer much higher returns.
Smart Money Investors Call Best Wallet The Next 10x Crypto
While Magic Eden’s wallet could result in more bearish price action for $ME, Best Wallet is quickly establishing itself as one of the top crypto wallet brands on the market.
It is not without any reason that the Best Wallet Token (BEST) has raised over $3.5 million in its presale.
Unlike chain-specific products like MetaMask, Best Wallet is a multi-chain, non-custodial wallet. Thanks to its integration with cutting-edge tools like Onramper, users can buy, swap and story crypto from 60-plus chains.
In fact, Best Wallet is branding itself as the one-stop shop for all things crypto. For instance, its “Upcoming Tokens” feature allows users to invest in the top trending presales without leaving their wallets. Similarly, its staking aggregator offers industry-high rates to users.
Best Wallet is also launching its own decentralized exchange and card – Best DEX and Best Card – allowing users to utilize their crypto seamlessly, including potentially paying with it in retail shops.
The upcoming $BEST token unlocks lucrative monetary perks within the Best Wallet ecosystem, one of the key reasons behind its demand. Whether it is the reduced trading fees, higher staking rewards or 8% cashback while using the Best Card, token holders can benefit from a plethora of exclusive perks.
Unsurprisingly, smart money investors are bullish on BEST’s upside potential, with some calling it the next 10x crypto.
