A patient Shiba Inu holder has experienced an incredible return on investment, turning $2,625 into over $1.1 million after holding for more than three years. This success story has sparked speculation about the start of the memecoin season.
According to Lookonchain, an on-chain security firm, this savvy trader made a remarkable 419-fold return on their initial investment. They converted their Shiba Inu holdings into Ether (ETH), resulting in their wallet, “0xe338,” now being valued at over $1.1 million.
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 trader turned $3,000 worth of Pepe into a staggering $46 million. This trader took advantage of the GameStop saga, which caused a surge in the price of certain memecoins.
While Dogecoin (DOGE) and SHIB, the two largest memecoins, have been experiencing price stagnation, other dog-themed memecoins have seen double-digit weekly gains. Dogwifhat (WIF) rose by 34%, Floki (FLOKI) rose by 35%, and Bonk (BONK) rose by over 25% in the past week.
Pepe also experienced a 26% increase in the weekly chart, reaching a new all-time high on May 27. However, there are indications of a potential 40% price correction based on Pepe fractals that suggest a repetition of patterns from January 2024.
While it is challenging to predict the start of a memecoin rally, some traders believe that the profits from the GameStop saga will flow into altcoins, similar to the 2021 bull run. This theory is supported by historical chart patterns that show the altcoin rally in 2021 was triggered shortly after the GameStop rally.
It is important to note that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.