r/CryptoCurrency subreddit’s MOON token clocked a record high of 84 cents over the weekend.
Interoperability protocol Celer has decided to support MOON, allowing token holders to bridge or move their coins to Arbitrum One. The bridge will debut on March 20.
Reddit’s IPO, due March 21, is four to five times oversubscribed, per Reuters.
Moons (MOON), the native cryptocurrency of Reddit’s r/CryptoCurrency community, is rallying ahead of the debut of Celer’s bidirectional bridging facility, which will allow token holders to transfer coins between Arbitrum Nova and Arbitrum One.
MOON rose to a record high of 84 cents over the weekend, surpassing the previous peak of 65 cents registered in July 2023, CoinDesk data show. At press time, the cryptocurrency changed hands at 50 cents, down 5% on a 24-hour basis compared to the 7% gain in the CoinDesk 20 index.
Moons are ERC-20 tokens distributed as rewards to users for their posts or comments in the r/CryptoCurrency subreddit. The tokens can be freely traded, tipped, or spent in the community.
Last month, r/CryptoCurrency announced that Celer, an interoperability protocol for cross-chain fund and message transfers, has decided to support MOON. The bridge, set to go live by March 20, will allow users to bridge or move their MOON tokens to layer 2 scaling solution Arbitrum One blockchain without having to wait one week, as is the case with Arbitrum’s official bridge.
Ethereum scaling solution Arbitrum operates two layers on the Ethereum blockchain – Arbitrum One, and Arbitrum Nova. The former is designed for DeFi trading activities, while the latter is focused on reducing transaction costs for high-throughput decentralized applications.
MOON is currently listed on Arbitrum Nova. After the bridge goes live, MOON holders can bridge coins from Nova to One and from One to Nova. As of writing, Arbitrum One boasts higher liquidity, with $3.43 billion worth of cryptocurrencies locked in its decentralized finance ecosystem, according to DeFiLlama. Meanwhile, Arbitrum Nova had $2.09 million.
The relative popularity of Arbitrum One means bridging MOON to the platform will expose the cryptocurrency to a broader range of DeFi applications while minimizing the risk of potential shutdowns, r/CryptoCurrency’s official post explained.
Users who bridge MOON to Arbitrum One will retail voting power. However, distribution and tipping of the token will continue over Nova, which has low transaction costs, the post added.
Lastly, Reddit’s initial public offering (IPO), due on March 21, may have generated investor interest in the community token. As per Reuters, the IPO is four to five times overly subscribed, which suggests the shares in the social media platform could debut with a valuation of $6.5 billion.
