The recent jump in the price of Avalanche (AVAX) has led to massive profits for memecoin speculators on the blockchain.
Avalanche (AVAX) has been one of the standout performers in the crypto market in recent times. The layer-1 blockchain has seen its native token jump by 120% in the past thirty days, outperforming other major competitors such as Solana (SOL) within the stated timeframe.
However, the surge in AVAX’s price has led to a corresponding increase in memecoin speculation on the network, with impressive results for those who play the game correctly. Blockchain analytics platform Arkham noted two such cases in recent weeks, which have caught the eye of many investors.
First, an Avalanche-based trader who bought into a meme coin called COQINU early made huge profits as the token’s market cap grew from $0 to $48.9 million in six days. The trader invested $150 into the token and cashed out over $240,000 near the peak, representing over 162,300% profit.
0xB44 spent only 5.5 AVAX (<$150) to acquire 689B of COQINU, which he sold around 6 days later on a different address, for over $240K.
That’s a gain of 162,300% in less than a week. pic.twitter.com/LtrjBSAdmJ
— Arkham (@ArkhamIntel) December 13, 2023
Another investor put $5,000 into Avalanche-based meme coin Landwolf (WOLF), generating over thirty times more in unrealized profits, with their investment worth over $193,000 at current prices. Notably, this investor has yet to cash out their profits.
Other tokens caught up in the wave of activity included Landwolf – one early buyer 0x037 managed to acquire $193K of WOLF with only $5K – scoring over 30x returns in a few days.
Unlike before – this trader hasn’t sold his 6-figure payday yet, so keep an eye out. pic.twitter.com/FfB0VCP6fG
— Arkham (@ArkhamIntel) December 13, 2023
Memecoin Speculating Goes Wrong
Unlike the earlier cases where investors made significant gains, it is widely known that meme coin trading can be extremely risky. On-chain data revealed that another trader who tried buying into AVAX memecoin EGG ended badly.
Prices barely moved after the investor used their last 2 ETH to invest in the token, leading to over 80% in capital losses. The outcome reminds potential memecoin speculators of the value of investing only an amount they can afford to lose.
In the meantime, meme coin speculation evidently helps drive activity on the network and demand for its native token. AVAX has profited from such a move, with the token rebounding strongly amongst other leading cryptos. AVAX is trading at $38.36 when writing, representing over 9% gain in the past 24 hours.