Reddit announced last month that it would move its ERC-20 reward tokens to Arbitrum, a prominent layer two scaling solution on Ethereum. The value of Reddit tokens BRICKS and MOON have since surged over the last month partially due to their launch on the layer two solution, Arbitrum.
Following MOON’s launch on Arbitrum, the token will now be exchanged in quick transactions and will use little gas fees. As MOON will now leverage Ethereum’s security, Reddit users will use their tokens on apps in the Arbitrum ecosystem. Users will then be able to settle their tokens with more ease on Ethereum mainnet.
Although the crypto market generally remained flat over the last month, the price of MOON grew by over 500%. Each MOON token is currently selling for $0.25, as reported by CoinGecko, and the price has doubled in one week.
Before MOON migrated to Arbitrum, distribution took place on the Rinkeby Ethereum test network. It was then bridged from testnet to xDai, the sidechain, and then traded on HoneySwap. Yet MOON had little value owing to it being a testnet token and because it did not have any direct integration with Ethereum.
The integration with the Ethereum mainnet has positively affected MOON tokens’ value and has also been bullish.
Image Credits: Pixabay
