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Sponge, a outstanding meme coin in 2024, is on the verge of a major transition as the staking deadline for Sponge V2 looms nearer, set for 11:00 pm UTC.
This marks an important second for the Sponge group as it navigates the shift from Sponge V1 to Sponge V2, desiring to introduce a brand new gaming ecosystem.
The migration from Ethereum to Polygon is underway, terminating Sponge V1 and introducing its successor, Sponge V2.
The choice emigrate has been termed ‘bullish’ by crypto analysts, specializing in transferring the group to a safer and environment friendly blockchain setting. This transfer was expedited after an exploit in opposition to the unique Sponge good contract, necessitating a fast transition to Sponge V2 earlier than the liquidity unlock scheduled for February sixth.
 
 
The transition to the Polygon community goals to supply cheaper and sooner transactions whereas additionally mitigating potential vulnerabilities within the ERC-20 good contract. The shift to Layer-2 on Polygon aligns with Sponge’s broader plan to ship a decentralised play-to-earn sport.
Traders are presently dealing with the upcoming staking deadline to qualify for Sponge V2, and there are two obtainable choices.
New buyers can buy Sponge V2 tokens utilizing ETH, USDT, or fiat through the Sponge.vip web site, with bought tokens requiring staking within the official pool for redemption at a 1:1 ratio for Sponge V2 tokens.
Current holders of the unique Sponge V1 token should bridge their holdings to Sponge V2 via an easy staking mechanism.
Buying and selling on centralised exchanges for $SPONGE v1 tokens will stop, urging holders to withdraw their tokens and stake them on the sponge token website earlier than the snapshot deadline at 11pm UTC.
Whereas V2 swaps will nonetheless be obtainable for those that miss the staking deadline, the alternate shall be at a standardised 1:1 swap ratio with out extra token yield from the staking mechanism.
The staking mechanism has gained traction, with 7.67 million $SPONGE tokens already positioned for bridging to Sponge V2, valued at a considerable $5.7 million USD. The novel staking mechanism gives a horny 211% staking APY, offering a possibility for substantial returns in a brief timeframe.
Market Influence and Investor Sentiment
Because the Sponge V2 transition positive factors momentum, market confidence within the Sponge undertaking has elevated, reflecting a week-on-week acquire of +13.3% for the Sponge token. At the moment buying and selling at $0.0006784, Sponge token has outperformed comparably fashionable meme cash like Shiba Inu (SHIB), which noticed losses of -0.65% throughout the identical interval.
The anticipation of a second Sponge bull-run following the transition to Sponge V2 has fuelled Sponge token’s sturdy outperformance. Merchants are optimistic, anticipating Sponge V2 to duplicate the surge that took the unique Sponge token to a $100 million market cap in Spring 2023.
Safety-Pushed Migration and Strategic Benefits
Sponge’s migration to SPONGE V2 on the Polygon community is a response to a safety incident involving an exploit on the liquidity pool. Measures have been applied to insulate token holders from adverse impacts, and static evaluation testing has been performed to handle vulnerabilities. Regardless of the preliminary worth affect, Sponge has returned to assist ranges noticed in December.
Beginning Monday, February fifth, at 11:00 pm UTC, the transition course of aligns with the unique contract design, phasing out Sponge V1 instantly and rendering it nugatory after February fifth.
This expedited transfer to SPONGE V2 on the Polygon community capitalises on Polygon’s decrease transaction charges. As a Layer-2 community, Polygon gives enhanced scalability, with the flexibility to deal with as much as 7,000 transactions per second (tps) in comparison with Ethereum’s 1–25 tps.
Potential Justin Solar Involvement and Market Dynamics
Hypothesis has arisen concerning the potential involvement of Justin Solar, the founding father of TRON, in Sponge V2. Solar just lately transferred $14.7 million in ETH to an unknown pockets, sparking rumours of his curiosity within the soon-to-launch meme coin. Solar’s earlier engagement with Sponge, holding over 108 million Sponge V1 tokens, additional fuels hypothesis a few potential funding.
The Sponge group anticipates a major funding from Solar, contemplating the upcoming V2 launch, the Stake-to-Bridge protocol and the latest 132% worth pump of the unique Sponge token. Solar’s historical past of buying and selling meme cash and the upcoming staking deadline has positioned $SPONGEV2 as a token to observe for 10-100x positive factors in 2024.
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