- On-chain data shows Ethereum whales have doubled down their bet on meme coins despite recent drawbacks.
- Pepe coin has registered gains of more than 100x since the meme token began trading on DEXes.
The rise of more volatile and liquid meme coins – including Pepe (PEPE) and WOJAK – has significantly attracted crypto whales without fear of getting rekt. Moreover, the top altcoins and Bitcoin have begun showing early signs of topping. For instance, Bitcoin price has revisited a support level of around $27.3k after a strong rejection of around $29.8k. Similarly, the second largest digital asset by market capitalization, Ethereum (ETH) has seen its price retest a major support level of around $1,800.
With the possibility of an incoming capitulation, the stablecoins trading volume has significantly increased in the recent past. For instance, the largest stablecoin Tether USDT has seen its trading volume more than double in the past two days. In this regard, crypto investors could be anticipating a possible capitulation in the coming days.
Furthermore, the rise of meme coins in the crypto market is largely considered to be the end of a bull market era.
Ethereum Whales Bet on Emerging Memecoins
According to the on-chain analysis platform Lookonchain, more crypto whales have doubled down their meme coin bets in the recent past. Precisely, Lookonchain spotted a whale that purchased 962.3B $PEPE coins with 70 $WBTC and 470 $ETH in the past two days. Interestingly, the whale has held along the increased Pepe volatility having lost about $541k as of Tuesday.
The firm also spotted another whale that made a whopping $1.71 million profit from a $4,410 investment in Pepe coin in the recent past. Notably, the whale swapped an Ethereum bag for Pepe holdings. While the whale is observed to trade other meme coins, Lookonchain noted that the whale provides liquidity for meme coins to earn transaction fees.
6.
Which #MEME coins are the SmartMoney buying?
The SMartMoney:
– Bought 148M $WSB with 28 $ETH($52,004);
– Bought 16M $V with 4 $ETH($7,479);
– Bought 3T $IKUN with 1 $ETH($1,863);
– Bought 3,100 $PIPI with 1 $ETH($1,869) today. pic.twitter.com/v5Rv1HCemy— Lookonchain (@lookonchain) May 2, 2023
Crypto Market Outlook
The crypto market has been in a relief rally since the calendar flipped in January this year. The demise of three regional banks in the United States – including Silicon Valley Bank, Signature Bank, and First Republic Bank – and European-based Credit Suisse has significantly increased investors’ confidence in self custody of digital assets. As a result, more cash flow is expected to enter the crypto market from the banking sector in the coming years.
Meanwhile, the ongoing crypto regulatory scrutiny in the United States has significantly impacted the crypto industry. Already, the SEC has significantly drained the staking industry in the United States. Additionally, several centralized crypto exchanges are preparing to leave the United States market amid increased regulatory scrutiny. For instance, the Bittrex crypto exchange recently filed for Chapter 11 bankruptcy protection after ceasing United States operations.
Last month, Bittrex US announced that it would cease all operations in the United States and asked its customers to withdraw their funds. That process ended on 30 April.
— Bittrex Global (@BittrexGlobal) May 9, 2023
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Perfect Entry?
By now it is safe to assume that most of the gains in the meme coins market have already been registered. Entering the meme coin industry at current conditions could lead to immense losses as early investors continue to take profits. Nevertheless, due to increased FOMO traders, a further uptrend could be registered in the meme coin industry in the near future, thus important to conduct thorough research before investing.
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