The new meme coin on the block has brought impressive profits to crypto traders and ranks among the best performers. Fun token Dogwife Hut (WIF) reached $1.9 billion in capital on March 4th, making it a billionaire on the Solana (SOL) blockchain.
Notably, the trader spent 5.28 SOL to purchase 2.58 Million WIF worth $310 in late November 2023.as report by look on chain, This stack is currently worth $4.1 million, or over 30,000 SOL.
Notably, memecoin investors have started reaping profits during the recent rally. So far, the trader has sold 750,000 WIF for 9,363 SOL, which equates to his realized profit of $1.21 million.
This 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 virtual currency market
Meme coin mania is back in the crypto market and traders need to be careful.
Investors were surprised this morning to see the top five weekly performers among the top 100 cryptocurrencies held by Memecoin. PEPE has risen 420% in the past 7 days and is at the top with $3.5 billion traded in the past 24 hours.
In a similar story, PEPE traders recently made profits of $3,000 to $35 million.
The remaining top five are occupied by FLOKI, dogwifhat, Shiba Inu (SHIB), and BONK. In this context, Ethereum (ETH) remains the most profitable DeFi blockchain to speculate on meme coins. Solana, on the other hand, gained significant market share represented by WIF and BONK.
WIF is currently trading at $1.72, an increase of over 300% over the past week.
Nevertheless, meme coins are created purely out of speculative demand and can disappear as quickly as they arrive. Trading these cryptocurrencies is risky and volatility, both up and down, can be significant.
Once the euphoria and greed wears off, meme coins have no prospects for recovery due to lack of fundamentals and organic demand. Investors should understand the nature of tokens created for fun and never put more money in than they can potentially lose.
Disclaimer: Content on this site should not be considered investment advice. Investments are speculative. When you invest, your capital is at risk.
