Why Crypto Whales are Betting Big on This Meme Coin

The meme coin Dogwifhat (WIF) has skyrocketed, surging over 100% from a mere $1 to over $2 in just 12 hours. This surge pushed it to all-time highs.

Now, its market capitalization exceeds $2 billion three months after its launch.

Crypto Whales Buy The WIF Dip

Crypto whales quickly noticed the price dip, seizing the opportunity to accumulate WIF at low prices. Notably, the on-chain analytics platform Lookonchain highlighted significant purchases by these investors.

One crypto whale, with the wallet address 87Hnwj, spent $5 million for 2.97 million WIF at an average of $1.69. Another wallet – GjRacG, invested $1.93 million in 1.15 million WIF, paying about $1.67 on average. These moves signal a strong accumulation.

WIF’s issuance in late 2023 captured the crypto community’s attention. It draws value from meme culture, especially an image of a dog wearing a hat. This unique appeal made WIF the first major meme token to cross the $1 mark. This achievement is unprecedented, especially compared to predecessors like Dogecoin (DOGE) or Shiba Inu (SHIB), which have never breached the $1 threshold.

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

Binance’s decision to list WIF was crucial to its surge earlier this month. This listing led to a trading boom, with Binance recording over $200 million in WIF trades on the first day. Furthermore, anticipating additional listings and its popularity among retail investors fueled its ascent.

Despite a market crash that liquidated over $1.13 billion in trades, WIF stood out and swiftly recovered, outperforming its peers.

Critics often question the utility and volatility of meme coins. They also express concerns over the anonymity of their developers, fearing potential market manipulations or scams. Yet, supporters like Whalefud Capital offer a counterargument. They believe meme coins offer a unique value proposition.

Read more: 13 Best Altcoins To Invest In March 2024

“Meme coins don’t need fancy utilities to shine. Just pure meme power and a community that loves to laugh. Utility coins, on the other hand, often come with promises of usefulness that end up fizzling out or nobody bothers to use, leading investors to sell their tokens,” Whalefud Capital said.