The Solana (SOL)-based memecoin dogwifhat (WIF) is one of the brightest stars of the current price rally. Given the rise of the meme coin sector, large investors are increasingly attracted to such assets.
Memcoins are increasingly becoming the focus of smart money attention. In particular, large investors are betting on coins such as dogwifhat and cat in a dogs world (MEW).
How “smart money” makes money on “meme” coins
Analysts Lookonchain noticed a large wallet earning impressive amounts of money on memcoins. So, the day before, an unknown investor managed to earn $1.27 million by trading WIF.
On March 20, the address found by specialists exchanged 10 thousand SOL (about $1.91 million) for 776,830 WIF. According to CoinGecko, at that time the price of the “meme” coin was $2.24. Since then, the asset price has collectively increased by almost 60% and currently reaches $3.72.
WIF’s capitalization now exceeds $4 billion. Recently, the asset even supplanted Pepe (PEPE) in the ranking of memcoins by market value.
Thus, the smart money's unrealized profits on the dogwifhat memcoin exceed $1.2 million.
Over the past 24 hours, the whale also spent 6 thousand SOL ($1.15 million) on the purchase of a new “meme” coin on Solana – cat in a dogs world, launched at the end of March this year. He purchased 181 million MEW, the rate of which increased by 9.4% over the past day, and by 120% over the week.
The crypto community is starting to see value in memcoins
The memcoin sector is actively growing, fueling interest from investors. The potential for high returns is gradually changing the narrative around this category of crypto assets. Many people are no longer treating meme coins as mere speculative tokens and are finding real value in them.
Thus, a well-known trader in the crypto community and former CEO of the BitMEX exchange, Arthur Hayes, recently stated that memcoins are of great benefit to the networks on which they are built. The excitement around such crypto assets attracts more users and developers to the blockchain.
According to Ethereum (ETH) co-founder Vitalik Buterin, memcoins have enormous potential that can serve the benefit of the entire society.
According to CoinGeckoat the time of writing, the capitalization of the meme coin sector is $61 billion. The leaders in capitalization include Dogecoin (DOGE), Shiba Inu (SHIB) and WIF.
Source: Cryptocurrency
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