A Shiba Inu (SHIB) trader has turned a long-term hold into a massive profit, leveraging meticulous timing and market conditions to secure substantial gains.
According to LookOnChain, a Shiba Inu trader, referred to as the “super diamond trader,” became active after 3.5 years of dormancy, turning an initial investment of 2 Ethereum (ETH), worth around $2,625 at the time, into a substantial profit.
On February 1, 2021, the trader purchased 48.09 billion SHIB tokens when the token was trading at approximately $0.00000001. Fast-forward to the present, the trader sold their SHIB holdings for 278.7 ETH, equivalent to around $1.1 million, marking a staggering 419x return on the initial investment.
On-chain data reveals that the transaction was executed using a Maximal Extractable Value (MEV) bot on May 27 at 03:20 PM UTC. MEV transactions, a unique feature of the Ethereum network, allow traders to maximize profits by reordering transactions within a block.
While these transactions can influence gas fees and transaction orders, they typically do not impact the overall price of the traded asset.
This is because MEV transactions are designed to extract value by manipulating the sequence of transactions rather than altering the supply and demand dynamics that determine asset prices.
Transactions details. Source: Etherscan
Increased Interest in Memecoins
The profitable trade comes during a period of heightened interest in memecoins.
According to CoinMarketCap data, the cumulative trading volume of memecoins surged over 40% on May 28, reaching over $13 billion.
This increased activity in the memecoin market highlights the ongoing fascination and speculative potential of these digital assets.
Despite the substantial SHIB sale, the token’s price remained almost unaffected due to the nature of the MEV bot transaction.MEV transactions are intended to capture maximum value without causing significant market disruptions.
This mechanism ensures that the larger market dynamics remain stable, even when large quantities of tokens are traded.
Additionally, the 25% rally in Ethereum’s price over the week likely influenced the trader’s decision to sell, capitalizing on the favorable market conditions.
Following the transaction, the trader’s wallet, identified as “0xe338,” now holds over $1.085 million in Ethereum, as reported by CoinStats.
Wallet address “0xe338.” Source: CoinStats
SHIB price analysis
SHIB 1-day price chart. Source: TradingView
Shiba Inu is currently trading at $0.0000277, with a one-day gain of over 2.5%. SHIB accumulation looks promising to traders, especially as Coinbase announced the offering of 1,000 SHIB perpetual contract trading from May 30.
The token has been oscillating between support at $0.000025 and resistance at $0.00003.
Shiba Inu’s latest spike coincides with the rise of important metrics related to its ecosystem. Trading volume in the past 24 hours has pumped to nearly $2.4 billion, outperforming Dogecoin (DOGE) at $1.5 billion.
Despite the surge, SHIB remains the second-biggest meme coin, trailing behind Dogecoin, which has a market capitalization of $23.8 billion.
While there are opportunities for potential gains, it is important to understand that trends in this market can sometimes change dramatically, making it critical to do your own research.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
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