A patient holder of Shiba Inu (SHIB) has managed to turn a $2,625 investment into a staggering $1.1 million after patiently waiting for over three years. This impressive return on investment is raising questions about whether this marks the beginning of the memecoin season.
The Shiba Inu holder, who displayed a shrewd trading strategy, was first noticed by Lookonchain, an on-chain security firm, and their findings were shared in a May 27 X post. According to Lookonchain, the trader’s transactions revealed the tremendous profit they made.
After cashing in on their profits, the trader’s wallet, known as “0xe338,” is now valued at over $1.1 million. This impressive increase in value was achieved by converting their Shiba Inu holdings into Ether (ETH), as shown by data from CoinStats.
This profitable trade comes at a time when there is a growing interest in memecoins. According to CoinMarketCap data, the cumulative trading volume of memecoins surged by over 40% on May 28, reaching over $13 billion.
Interestingly, this trade occurred just two weeks after another savvy crypto trader managed to turn $3,000 worth of Pepe (PEPE) into an astonishing $46 million. This trader took advantage of the reemergence of the GameStop saga, which caused a surge in the prices of certain memecoins.
While the prices of the two largest memecoins, Dogecoin (DOGE) and SHIB, have been lagging behind, other dog-themed memecoins have been experiencing significant gains. For instance, Solana-based Dogwifhat (WIF) saw a 34% increase, Floki (FLOKI) rose by 35%, and Bonk (BONK) surged by over 25% in the past week.
Pepe also experienced a 26% rise in its price on the weekly chart, reaching a new all-time high on May 27. However, there are concerns that Pepe may undergo a 40% price correction if the price chart follows the patterns observed in January 2024.
While it is challenging to predict the start of a memecoin rally, some traders believe that the profits gained from the GameStop saga will flow into altcoins, similar to what happened during the 2021 bull run. This theory is supported by the fact that Pepe’s rally coincided with the return of the GameStop GME stock saga.
Historical chart patterns also suggest a correlation between the GameStop rally and the subsequent altcoin rally in 2021, according to a post by crypto analyst CryptoAmsterdam on May 14. This indicates that altcoins may see a surge in value following the recent GameStop frenzy.
It is important to note that this article does not provide investment advice or recommendations. Investing and trading always carry risks, and readers should conduct their own research before making any decisions.