During a recent cryptocurrency market downturn, large investors on the Solana blockchain, commonly referred to as whales, have been actively purchasing meme coins despite the plummeting prices of these assets.
Solana Whales' Memecoin Accumulation and Panic Selling Trends
According to data provided by on-chain analysis service Lookonchain, Solana whales initiated active accumulation of memecoins as prices began to decline. Two significant whales were observed accumulating various memecoins such as the Sloth-themed coin Slerf ($SLERF), Pepe-themed Book of Meme ($BOME), and the Jode Biden-based Jeo Boden ($BODEN).
These tokens were acquired from prominent cryptocurrency exchanges including KuCoin and Binance. One whale transferred 31,916 SOL valued at over 44.5 million from KuCoin, allocating nearly $300,000 to purchase BODEN. Another whale transferred $2.25 million from a leading cryptocurrency exchange to then allocate $1.12 million for SLERF and $660,000 for BOME.
However, Lookonchain’s data also indicates a more cautious stance from other whales, with four separate whales identified as engaging in "panic selling" during the market correction. These whales collectively offloaded a total of $12.41 million worth of Dogwifhat (WIF), the primary meme coin on the Solana blockchain.
Read more: Solana DEX Trading Surges Past $1 Billion Amid DeFi Regulatory Focus
Market Correction Amid Geopolitical Tensions and Solana's Decline
Cryptocurrency prices began to correct over the weekend following Iran's launch of a large-scale attack on Israel using drones and cruise missiles. Investors moved into safe-haven assets amid concerns that the attack could escalate into a broader conflict.
Meanwhile, Solana's price has been in a steep decline over the past few days, falling by over 27% in a week to trade at approximately $130. The network has been struggling with congestion caused by a surge in memecoin traders and bots.
Notably, a well-known cryptocurrency analyst, recognized for accurately predicting the bottom of the cryptocurrency market during the 2018 bear market, recently shared his belief that the price of the smart contract platform Solana will rise further. However, this prediction was made after SOL dropped to the $160 mark, and the cryptocurrency has since fallen to the $130 mark.
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