The cryptocurrency known as Metastrike experienced a sudden and significant surge in price on Friday, catching investors off guard as they tried to make sense of the rally.
Metastrike (MTS), an altcoin in the metaverse, skyrocketed from $0.0092 to $0.01871 within a 24-hour trading period, marking a 101% increase in trading volume by January 5th.
During this time, trading volume surged from $90,000 to over $1.27 million across various exchanges. KuCoin accounted for 64.33% of this volume, followed by PancakeSwap with 18.33% and Gate.io with 16.3%, according to data from Arkham Intelligence.
A closer examination of on-chain activity revealed some puzzling behavior. Certain addresses were consistently buying small amounts of MTS and then selling it on PancakeSwap shortly afterward, with transaction histories showing this pattern repeating hundreds of times.
The exact purpose behind this automated trading activity remains unclear. One theory suggests arbitrage between centralized and decentralized exchanges, while another possibility is that these addresses are trying to capitalize on the extreme volatility exhibited by Metastrike to maximize profits and minimize risks.
Metastrike positions itself as a blockchain-based multiplayer shooting game where players can own NFT guns and engage in virtual battles. The project offers customization options for weapons and avatars, allowing users to earn profits through in-game events.
Despite the surge in price and volume, developers of Metastrike have not made any announcements that could explain the sudden uptick. Social media trends data from Santiment indicates that Metastrike is not among the top ten most mentioned cryptocurrencies online, with its social dominance level reaching just 0.031% at the time of publication.
In summary, the unexpected price surge of Metastrike has left investors puzzled, with the exact reasons behind the rally remaining shrouded in mystery.