A patient Shiba Inu holder has experienced an incredible return on investment, turning $2,625 into over $1.1 million over a span of three years. This impressive feat has sparked speculation that the memecoin season may be just beginning.
The Shiba Inu holder, who demonstrated remarkable trading skills, was first discovered by Lookonchain, an on-chain security firm. The firm shared the news on May 27, highlighting the trader’s transactions and the substantial profit they made.
According to CoinStats data, the trader’s wallet with the address “0xe338” is now worth more than $1.1 million. This impressive growth was achieved by converting the Shiba Inu holdings into Ether (ETH).
This profitable trade comes at a time when there is increased interest in memecoins. CoinMarketCap data shows that the cumulative trading volume of memecoins rose by over 40% on May 28, reaching over $13 billion.
Interestingly, this trade occurred just two weeks after another savvy trader turned $3,000 worth of Pepe into a staggering $46 million. This trader took advantage of the resurgence of the GameStop saga, which caused a surge in the price of certain memecoins.
While the price action of the two largest memecoins, Dogecoin (DOGE) and Shiba Inu, has been lackluster, other dog-themed memecoins have been performing well. Dogwifhat (WIF), Floki (FLOKI), and Bonk (BONK) have all seen double-digit weekly gains.
Even Pepe experienced a 26% increase in price after reaching a new all-time high on May 27. However, there are indications of a potential 40% price correction based on Pepe’s fractals, which suggest a pattern similar to January 2024.
Predicting the start of a comprehensive memecoin run is challenging, but some traders believe that the profits from GameStop will flow into altcoins, just like the 2021 bull run. This theory is supported by historical chart patterns, which show that the altcoin rally in 2021 was catalyzed by the GameStop rally.
It’s 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.