Crypto Whales Dump Nearly $26 Million Worth of Meme Coins as Market Slumps

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 (PEPE), 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.

Read more: 7 Hot Meme Coins and Altcoins that are Trending in 2024

Simultaneously, another crypto whale wallet, 0x42a, moved an impressive 1.088 trillion Shiba Inu (SHIB) 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.

Shiba Inu (SHIB) and Pepe (PEPE) Price Performance. Source: TradingView

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.

Read more: Pepe (PEPE) Price Prediction 2024/2025/2030

Also, the pattern of de-risking by crypto whales suggests a strategic realignment rather than a complete withdrawal from the meme coin arena.

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