The native token of Reddit's Fortnite community, Bricks, has experienced an impressive surge of 110% in just 24 hours, recovering from its recent downfall of over 80% in value over the past two months.
The majority of Bricks' trading activity was observed on Kraken, with total trading volume across all exchanges reaching approximately $750,000. This surge marked an incredible 800% increase compared to the previous 24-hour period, as reported by CoinMarketCap.
Despite the lack of a clear trigger for this price surge, Bricks has managed to defy the broader cryptocurrency trend, in which bitcoin recently fell below $27,000 on Wednesday.
Bricks, an ERC-20 token, was initially distributed to active members of the Fortnite subreddit. In August, it experienced a significant surge in value, coinciding with the growing excitement surrounding other Reddit community tokens such as Moons from r/cryptocurrency.
It is worth noting that liquidity across all exchanges remains relatively limited, with a market depth of 2% on Kraken, equivalent to around $2,500 on both the bid and ask side. Market depth is an important metric used to evaluate the capital required to influence the price movement of an asset.
For traders, the lack of liquidity in an asset that has witnessed substantial growth poses risks, as the price could swiftly reverse with minimal effort, potentially trapping those who purchased the token at its recent peak.