As Bitcoin momentarily dipped below the $59,000 threshold yesterday, panic ensued among retail investors and crypto whales. Amid this volatility, on-chain data reveals that these significant players are strategically reducing their meme coin holdings.
Known for their high-risk, high-reward nature, meme coins often experience sharp fluctuations.
Meme Coins Rebound After Crypto Whales’ Transfers
On Monday evening, a notable transaction occurred. According to data from Spot On Chain, crypto whale wallet 0x837 transferred 700 billion Pepe PEPEUSD, valued at approximately $7.83 million, to the trading platform Binance. Nevertheless, this investor still holds 800 billion PEPE, currently worth about $8.97 million.
If crypto wallet 0x837 truly sold the token, he might have suffered a net loss of around $3.47 million. This indicates a 15% decrease from the token’s initial valuation.
Simultaneously, another crypto whale wallet, 0x42a, moved an impressive 1.088 trillion Shiba Inu SHIBUSD to Binance. The value of this transaction was $18.12 million.
Unlike 0x837, wallet 0x42a has managed to avoid a loss. Indeed, if sold now, this whale could realize a profit of $8 million, which is a 79% increase over seven months. However, this figure is sharply down from an unrealized peak profit of $29 million during SHIB’s high in March.
In total, the two crypto whales deposited $26 million worth of meme coins in Binance. Following these transactions, both PEPE and SHIB demonstrated strong recoveries. Since early Tuesday, Shiba Inu’s value has increased by 5%, and Pepe’s has climbed by 12.80%.
“The next run for PEPE is going to be magnificent,” crypto trader James Wynn said.
Wynn’s optimism reflects a broader confidence in the meme coin sector’s resilience, even after significant market disturbances. Additionally, the wider meme coin market has shown a quick recovery from Monday’s lows. In the last 24 hours, the total market capitalization of meme coins has surged by 7.79%, reaching approximately $47 billion, according to CoinMarketCap data.
Also, the pattern of de-risking by crypto whales suggests a strategic realignment rather than a complete withdrawal from the meme coin arena.