A new meme coin in the block has given impressive gains to cryptocurrency traders, ranking among the best performers. The fun-token dogwifhat (WIF) reached $1.90 billion in capitalization on March 4, making millionaires on Solana’s (SOL) blockchain.
In particular, a trader spent 5.28 SOL in late November 2023 to buy 2.58 million WIF worth $310. As reported by Lookonchain, this stack is currently worth $4.1 million, or over 30,000 SOL.
Notably, the meme coin investor started collecting his gains during the recent spike. So far, the trader has sold 750,000 WIF for 9,363 SOL, worth $1.21 million of realized profits.
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This has left the Solana-based account with a balance of 1.83 million WIF, worth $2.91 million. Interestingly, dogwifhat was trading at $1.58 on Raydium (RAY) – a decentralized exchange running on Solana.
Meme coin mania dominates the cryptocurrency market
The meme coin mania is back in the cryptocurrency market, and traders must be cautious.
Investors were surprised this morning to see the top five weekly performances among the top 100 cryptocurrencies held by meme coins. PEPE is leading with 420% gains in the last seven days and $3.5 billion exchanged in the past 24 hours.
In a similar story, a PEPE trader has recently turned $3,000 to $35 million.
FLOKI, dogwifhat, Shiba Inu (SHIB), and BONK compose the rest of the top five. In this context, Ethereum (ETH) is still the most profitable DeFi blockchain to speculate on meme coins. Meanwhile, Solana conquered a significant market share, with WIF and BONK as its representatives.
WIF now trades at $1.72, up over 300% in the week.
Nevertheless, meme coins are made of a purely speculative demand, which can vanish as fast as it arrives. Trading these cryptocurrencies is risky, and the volatility can be tremendous – both upside and downside.
When the euphoria and greed disappear, meme coins have no recovery perspectives due to the lack of fundamentals and organic demand. Investors must understand the nature of tokens made to have fun and never deploy more money than they can lose.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
