A cryptocurrency trader who scored a seven-figure paper profit on a Starknet (STRK) trade is betting on another altcoin as market momentum builds.
The trader has now turned to Wormhole (W), opening a leveraged position as the token extends its rally.
According to blockchain analytics firm Lookonchain, the wallet opened a 5x isolated long on 28.88 million W tokens, valued at approximately $643,000 at entry.
The move follows a STRK trade in which the same wallet opened a 3x isolated long on 24.42 million tokens worth about $2.9 million. The position generated more than $1.05 million in unrealized profits in less than 24 hours, as reported by Finbold.
W was already up approximately 25% when the new position was reported. As of press time, the token was trading at $0.02832, up 55% in the past 24 hours, while on the weekly timeline Wormhole has gained 85%.
Why Wormhole is rallying
The rally coincided with improving altcoin sentiment. In this vein, CoinMarketCap’s Altcoin Season Index climbed to 64, signaling increased momentum among alternative cryptocurrencies relative to Bitcoin (BTC).
Trading volume and derivatives open interest also reportedly increased, suggesting greater market participation and speculative interest in W.
Wormhole is a cross-chain interoperability protocol that facilitates asset and data transfers between blockchains. Its native W token supports governance, while the protocol also focuses on multichain applications and real-world asset tokenization.
The trader’s 5x leverage amplifies both potential gains and losses. A sustained rally could increase unrealized profits, while a sharp reversal could trigger liquidation.
The STRK trade’s reported $1.05 million profit remained unrealized, meaning it represented paper gains rather than confirmed realized profits. The same distinction applies to the new W position.
Overall, Wormhole’s rally will depend on continued buying pressure and broader market sentiment, while profit-taking could put pressure on the token’s price.
Featured image via Shutterstock
