'Diamond hands' SHIB holder nets $1.1M profit after 3-year HODL

A Long-Term Shiba Inu (SHIB) Holder Turns $2,625 into Over $1.1 Million

A patient Shiba Inu (SHIB) holder has transformed a modest $2,625 investment into a staggering $1.1 million, a testament to the potential rewards of holding cryptocurrencies for the long term.

Shiba Inu Holder Nets Over $1M Profit

Over three years, the savvy trader has achieved an incredible 419-fold return on their initial investment. Lookonchain, an on-chain security firm, discovered the trader's remarkable success and shared it in a May 27 tweet:

"After being dormant for 3.5 years, the super diamond trader finally sold $SHIB at a profit. He spent 2 $ETH($2,625) to buy 48.09B $SHIB on Feb 1, 2021, and sold it for 278.7 $ETH($1.1M) just now, a gain of 419x!"

Shiba Inu holder transactions. Source: Lookonchain

Following the profitable trade, the trader's wallet "0xe338" now holds over $1.1 million, thanks to the conversion of their Shiba Inu holdings into Ether (ETH), according to data from CoinStats.

Wallet ‘0xe338’. Source: CoinStats

Memecoin Season on the Horizon?

This profitable trade coincides with a surge in interest in memecoins. The cumulative trading volume of memecoins soared by over 40% on May 28, surpassing $13 billion, as per CoinMarketCap data.

This trade follows another shrewd crypto trader who turned $3,000 worth of Pepe into $46 million by trading the Pepe (PEPE) memecoin during the resurgence of the GameStop saga, which boosted the prices of certain memecoins.

Dog-Themed Memecoins Rally

While Dogecoin (DOGE) and Shiba Inu (SHIB) have lagged in price action, other dog-themed memecoins have experienced double-digit weekly gains.

Solana-based Dogwifhat (WIF) surged by 34%, Floki (FLOKI) by 35%, and Bonk (BONK) by over 25% over the past week.

Wif, Bonk, Floki, 7-day chart. Source: TradingView

Pepe also rose by 26% on the weekly chart after reaching a new all-time high on May 27. However, Pepe fractals suggest a potential 40% price correction if historical patterns repeat themselves.

PEPE/USDT daily price chart. Source: TradingView

Altcoin Rally in the Making?

Predicting the start of a memecoin run is challenging, but some analysts believe that profits from GameStop could flow into altcoins, as occurred during the 2021 bull run. Pepe's rally coincided with the resurgence of the GameStop GME stock saga.

Historical chart patterns indicate that the 2021 altcoin rally was fueled by the GameStop rally, as suggested by crypto analyst CryptoAmsterdam's May 14 tweet, which included the following charts:

GME & Altcoins. Source: CryptoAmsterdam

Disclaimer:

This article is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any financial decisions.