How Traders Make Money Out of the Meme Coin Rally

The recent crypto rally left some rich while others suffered huge losses. What do traders say about this?

Pepe (PEPE) and squirrel Peanuts (PNUT) have become some of the best-performing assets in the meme coin industry. Their growth in recent weeks has outpaced all top altcoins. The rise in popularity of meme coins reflected a significant shift in macroeconomic market trends driven by high investor participation.

Trend analysis shows that meme coins currently hold a larger share of social dominance than Tier 1 tokens. In addition to PNUT and PEPE, users are actively discussing Dogecoin (DOGE), Dogwifhat (WIF) and Bonk (BONK). What are they talking about?

PNUT: Leader among meme coins

Last week the price of PNUT increased by 255%. Thanks to its rapid growth, the token has even entered the top 100 cryptocurrencies in terms of capitalization, exceeding $2 billion.

At the time of writing, the meme coin is trading at $1.64 and its all-time high (ATH) was $2.44.

PNU Price Table | Source: crypto.news

Amid the rapid growth, stories began to emerge in the crypto community about how investors became millionaires thanks to PNUT.

Thus, Lookonchain analysts reported that the unrealized profits of an unknown trader from investments in the PNUT meme coin amounted to more than $ 50 million.

Following Elon Musk’s message mentioning the PNUT meme coin on November 2, the trader bought the token and sold it for a profit of $1,500. It then spent $2.8 million to purchase PNUT between November 3 and 10. In total, he managed to accumulate 26.72 million PNUT, which is worth approximately $50 million at the time of this writing. He also has other meme coins in his balance.

crypto.news also spoke with investors who shared their PNUT success stories. A user nicknamed Mark shared that he was impressed by the news about the peanut squirrel euthanized in the USA.

Following the news about the squirrel, a trader purchased $100 worth of tokens. He earned more than $3,500 in just one week. Although some investors managed to make millions from popular tokens, he admitted that he was proud of his result.

“I must admit that I did not even expect 10 percent growth. I have often seen stories of traders making 100x the price of popular tokens. But for me, such stories have always been fantasy and a one-in-a-million chance. As a result, some people make millions while others lose. Therefore, I did not expect anything special from my investments. I decided to support the poor squirrel. Apparently he reciprocated my feelings.

The amazing story of PNUT trader Mark PEPE or how not to give up

Another fantastic story of faith was shared with crypto.news by a user named Drop Guru. He bought PEPE tokens in the spring amid a general wave of excitement. Soon PEPE’s popularity waned and its portfolio dropped significantly.

The trader did not lose hope and was in no hurry to sell the tokens. He believed that the potential of meme coins had not yet been fully explored and that the market was waiting for a new wave of growth; The main thing was to be patient.

“I have a good character trait that helps me when trading. I try not to give in to FOMO and take impulsive actions. And this time I saw the reward of my actions. I calmly waited for my portfolio to grow and sold PEPE for a 40 percent profit. No bad. I could have achieved more, but it is very important to stop in time and stabilize the snow.

Drop Guru, PEPE investor DOGE: More than a meme

The price of DOGE, which Elon Musk publicly supports, increased by more than 280% in one month.

But there are also failure stories in the crypto community. So Lookonchain shared the story of a trader who made around $920,000 on the SPX token and then bought DOGE with the proceeds and lost $1.33 million.

One whale changed everything $SPX positions $DOGE in the last 2 days!

Sold all 10.6 million $SPX Made a profit of ~$920K for $6.2M.

He later spent $6.2 million to buy 13.95 million $DOGE(currently $4.88 million), with a loss of $1.33 million!

Address:
0x64843213ddc682c328d14bade67c663e879dfa86… pic.twitter.com/dnU4mbWuct

— Lookonchain (@lookonchain) 15 November 2024

The token’s popularity is growing due to news of the establishment of the Department of Government Efficiency (DOGE) in the United States.

Meanwhile, the X crypto community has higher hopes than ever for DOGE, predicting that it will transcend the boundaries of a simple meme coin and become a full-fledged blue chip.

Bloomberg analyst Eric Balchunas admitted that Doge ETFs may soon appear in the US.

Doge ETF comes in 3..2..1..

— Eric Balchunas (@EricBalchunas) 12 November 2024

However, he noted that Dogecoin lacks some SEC requirements, such as a regulated futures market, and possible changes in SEC leadership could ease approval standards.

Should we expect the rise to continue?

Experts attribute the growth of meme coins to investors’ expectations regarding future regulatory policy in the crypto industry. Titan CEO Chris Chan stated that there was low volatility in the crypto market ahead of the US presidential elections. Investors took a wait-and-see attitude.

The election results brought additional uncertainty and increased interest in risky assets, including meme coins.

At the same time, the general enthusiasm after Donald Trump’s election victory has subsided, but the rise in individual tokens continues. The continuation of the green market will largely depend on what policy the White House will pursue regarding cryptocurrencies after the change of president.