The Book of Meme (BOME) token has been showing significant growth over the past week with a price gain of 34.4%. The price movement captured a lot of attention as it produced an anomaly in the crypto market because when most cryptocurrencies are going down, BOME is trending upwards by itself. At the same time that the price went up, Bitcoin (BTC) was trending downwards with a 5.5% correction in the last seven days.
BOME‘s Divergence from BTC
Looking at the price chart of BOME in Tradingview, it can be seen that when compared to BTC, there is a divergence that caught the attention of many traders in the crypto market.
Source: Tradingview
From March 31st, 2024 up until April 3rd, 2024, there is a divergence of movement between BTC and BONE.
During that timeframe, BOME increased by 23.87% while BTC experienced a correction by 7.10%.
BOME has also managed to diverge from most cryptocurrencies as most are following the movement of Bitcoin.
This movement has managed to continuously increase the transaction volume of BOME from traders who are still looking to find opportunities in the market even though most cryptocurrencies are trending downwards.
Confusion started to occur in the market as new degen traders that have not much experience in the crypto market asked questions as to why this was happening only to meme coins.
There is one main reason why BOME can diverge from Bitcoin and the whole market overall, which is the fact that it is a meme coin.
Meme coins are categorized as volatile assets, which solely rely on supply and demand without much news or sentiments around them.
Considering that these kinds of tokens have low market capitalization and an uneven distribution of holders, it is easy for the price to go up and down quickly, even if it diverges from the whole market movement.
The volatility can be created easily when there is a huge buying or selling volume, especially from whales who own a big portion of that token’s overall supply.
This is why BOME has managed to rise even when the market is falling because some whales keep on buying, prompting a positive condition for the overall holders of BOME.
Looking into Transaction Volume
The price control mechanism by larger holders seems to be working as almost 70% of the overall supply is held by the top 10 holders of the token.
Source: CoinGecko
It seems that even when the market is trending down, BOME has managed to keep its transaction volume high, currently reaching close to $1 Billion in daily transaction volume.
This is the cause of the whales holding the sentiment around BOME which translates into a price increase for the token.
Source: Coinglass
The futures market seems to not be any different as the open interest of the futures contract backed by BOME is still trending upwards.
Open Interest data represents the number of transactions being opened regarding that specific contract, which translates into the transaction volume of the asset that is backing the contract in the futures market.
Looking at the transaction volume of BOME in the spot and futures market, it is no surprise that the token is still trending upward even though the overall market condition is not as positive.
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