A major crypto investor has made moves in the Solana ecosystem amid widespread market turbulence. Despite the current crypto downturn, this strategic move highlights growing interest in Solana-based memecoins.
The whale’s substantial investment comes at a time when most digital assets face price corrections. Over the past day, major cryptocurrencies have suffered substantial losses, impacting various sectors, including memecoins.
Whale Accumulates $18.57 Million Worth of Memecoins
According to Spot On Chain, the whale, identified as “DWhUa,” made large purchases over the past 14 hours. The whale reportedly acquired $18.57 million worth of memecoins through Binance and decentralized exchanges (DEXs).
The breakdown includes 7.249 million $WIF ($13.3M), 5.77 million $POPCAT ($3.82M), 4.57 million $FWOG ($980K), and 3.9 million $MICHI ($470K). These tokens have since been transferred to a new wallet labeled “D2Noa.”
This buying spree comes amid a challenging phase for the cryptocurrency market, with memecoins experiencing significant declines. Analysts believe this move may indicate strategic positioning for potential gains if the market recovers.
Memecoin Sector Hit Hard by Market Downturn
The broader crypto market has fallen by 6.56% over the past day, while memecoins have fared even worse. Data shows that the memecoin sector’s total market capitalization has declined by 11.15%.
Despite these numbers, the whale’s actions suggest confidence in the long-term prospects of these tokens. According to CoinGecko, $WIF is currently priced at $1.87, down 9.96% over the past 24 hours but up 3.87% over the week.
$POPCAT is trading at $0.6793, reflecting a 16.15% daily drop and a 6.84% decline over the week. $FWOG and $MICHI have also seen mixed performance, with notable volatility.
Read also: Why Holding 1,000 Stellar (XLM) Tokens Right Now Could Be a Big Deal
Strategic Move Amid Market Weakness?
The whale’s acquisitions could signify a calculated attempt to accumulate tokens at discounted prices. Buying during downturns is a common strategy among seasoned investors aiming to capitalize on future recoveries.
Memecoins, known for their high volatility, could offer substantial rewards if the market rebounds soon. While the whale’s actions could be viewed as a bold gamble, they also serve as a sign of optimism.
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