500 Pairs Of Digital Socks Now Have A Market Cap Of $20 Million

After Dogecoin (DOGE)’s meteoric rise, other meme-based crypto assets have been gaining momentum.

What happened: In 2019, a decentralized finance (DeFi) protocol Uniswap launched Unisocks – a limited edition dynamically priced pair of socks. Today, one pair is worth over $74,813.

“500 pairs of digital socks have a market cap of $20 million. Memes are the new money”, wrote Meltem Demirors, Chief Strategy Officer at Coinshares.

Why it matters: Initially, Uniswap created 500 SOCKS tokens and deposited them into a Uniswap liquidity pool with 35 Ether – Ethereum’s native token.

Each pair of sold socks increased the price of the next pair,' creating a dynamic price curve for the SOCKS token.

As of Jan 29, the SOCKS token was trading at around $12,625, however, the token’s price rose sharply in the second week of February, touching an all-time high of $92,763 yesterday.

Uniswap had initially stated that the project was designed to be “experimental” in nature, but the current price of the SOCKS token serves as an example of how a market hype has the power to significantly drive up a price – particularly for tokenized assets significantly.

What else: Meanwhile, Uniswap’s decentralized exchange (DEX) just surpassed $100 billion in cumulative trading volume.

In the DeFi realm, Uniswap currently has over 53% of the market share.

The protocol’s native token UNI rose over 300% since the beginning of the year. At press time, UNI was trading at $20.29.

Image: Courtesy of Uniswap Protocol Twitter