The popular Solona meme coin WIF continues its impressive rally, with its price surging to around $4 earlier today (March 29). After today’s massive gains, the coin’s market capitalization reached a staggering $4 billion.
Although the price of WIF has retreated in the hours leading up to press time, the token still has a daily gain of 16.5%, with a unit trading at $3.62.
WIF becomes third largest meme coin
Its market capitalization currently stands at $3.63 billion, making it the third largest meme coin and the 41st largest cryptocurrency on the market.#NFTand Cryptocurrency#
This milestone currently places WIF behind only Shiba Inu Coin (SHIB) and Dogecoin (DOGE) in the meme coin rankings. Instead, WIF now ranks ahead of other meme-based cryptocurrencies such as Pepe (Pepe) and Floki (Floki), which are valued at $3.25 billion and $2.35 billion respectively.
Less than two weeks ago, Dogwifhat community members raised funds to sponsor the promotion of the token on the Vegas Sphere. The move appears to have paid off, as the coin has seen a significant price increase since then.
WIF's largest holder didn't sell despite making huge profits
The sharp rise in WIF prices enabled many investors to make huge profits. It is worth noting that one of the largest WIF holding addresses “2Fcm…PE6d” made huge profits.
According to prominent Chinese journalist Colin Wu, the address recorded a profit of $134 million, an increase of 1,440%, amid the surge in prices. Wu revealed that the users behind the address began purchasing the token in December 2023 at an average price of $0.248.
Further investigation by The Crypto Basic revealed that this address is the third largest WIF address, holding 37,627,488 (37.62 million) WIF tokens. This represents 3.76% of the total WIF supply.
According to data from Solscan, a BTC explorer, leading crypto exchange Binance is the largest WIF holder, holding 143,088,036.921841 (143 million) tokens, or 14.32% of the total supply. The second largest WIF address holds 4.26% of the token supply (42.6 million), worth $152.51 million.
Despite the impressive gains over the past day, Wu said the token’s sell-off has not yet begun. Apparently, investors expect the coin’s price to surge further.
Trading firms warn: Recent gains may fall
Meme coins surged 8% on average on Friday, outperforming niche sectors such as decentralized finance (DeFi), yield farms and exchange tokens, according to CoinGecko.
Earlier Thursday, the meme coin began a fresh rally amid speculation that social app X's upcoming payment service will use DOGE, although the company has yet to make an official statement.
Bets on futures tracked by Doge jumped to a record $2 billion, indicating that the market is leaning toward the long side in anticipation of future price fluctuations.
Meanwhile, some trading firms are warning that recent gains could be pulled back as price action in Bitcoin and Ethereum shows signs of exhaustion.
“After an exponential rise in prices in the first quarter, there are signs of exhaustion,” Singapore-based QCP Capital said on Friday. “Ethereum risk reversals are tilted to the downside at -8%, suggesting some concerns. Funding and forward rates remain very high, meaning speculators are still paying a premium to maintain their leveraged long positions.”