Notcoin Surges 30% in a Day as Trading Volume Exceeds Market Cap

On May 30, the gaming token Notcoin (NOT) surged by 30% to reach $0.012. Its market capitalization hit $1.22 billion with a trading volume of $1.29 billion, according to CoinGecko.

The weekly gain of the asset was nearly 130%. At the time of writing, the project ranks 81st among the largest cryptocurrencies. 

Despite a decline after listing, the asset continues to recover its position. Analysts at CryptoQuant linked this trend to the distribution model of NOT.

“After listing on Binance on May 16, there was a sharp increase in the number of transactions [with NOT] and active addresses, although the price and trading volumes soon decreased, indicating a waning initial excitement. Despite this, significant accumulation by large holders indicates sustained confidence,” the experts wrote. 

According to their data, a significant portion (69.59%) of the NOT airdrop was distributed via on-chain withdrawal, and 22.87% was directed towards community incentives—this “demonstrates a strategy aimed at broad engagement.”

A substantial share of the coins went to centralized exchanges after launch, noted CryptoQuant. The initial “excessive market reaction” prompted a correction, but the combination of holder accumulation and community incentives provided potential for recovery.

The author of the Telegram channel DEFI Scam Check pointed out that the futures trading volume of NOT on Binance exceeded the coin’s market capitalization by one and a half times. 

The researcher noted that the market maker for Notcoin is DWF Labs. Projects collaborating with the company typically exhibit several traits: 

• a significant excess of futures trading volume over the project’s capitalization by at least two to three times;
• discrepancies between spot and futures prices;
• strong interest in the project’s capitalization (currently, $74 million worth of NOT is on Binance—4% of the issuance).

So far, Notcoin partially meets only the first criterion. If these factors continue to manifest, DEFI Scam Check predicts a decline in the coin similar to other projects associated with DWF Labs.

Previously, ForkLog discussed with experts the reasons for the rise and future dynamics of NOT.

Earlier, Notcoin co-founder Alexander Plotvinov announced a coin-burning feature.