'Diamond hands' SHIB holder nets $1.1M profit after 3-year HODL

The trader made an over 400-fold return on his initial investment, which was worth a little over $2,600.

A long-term Shiba Inu (SHIB) holder has turned a $2,625 investment into over $1.1 million, after patiently holding for over three years. Is this the beginning of memecoin season?

Shiba Inu holder nets over $1M profit on $2,625 investment

The patient Shiba Inu holder made an over 419-fold return on his initial investment of $2,625 in over three years.

The savvy trader was first discovered by Lookonchain, as the on-chain security firm shared in a May 27 X post:

“After being dormant for 3.5 years, the super diamond trader finally sold $SHIB at a profit. He spent 2 $ETH($2,625) to buy 48.09B $SHIB on Feb 1, 2021, and sold it for 278.7 $ETH($1.1M) just now, a gain of 419x!”

Following the profit-taking, the trader’s wallet “0xe338” is worth over $1.1 million, due to converting the Shiba Inu holdings into Ether (ETH), CoinStats data shows.

The profitable trade comes during a period of increased interest toward memecoins. The cumulative trading volume of memecoins rose over 40% on May 28, to over $13 billion, according to CoinMarketCap data.

The trade occurred two weeks after another savvy crypto trader turned $3,000 worth of Pepe into $46 million, by trading the Pepe (PEPE) memecoin during the re-emergence of the GameStop saga, which boosted the price of certain memecoins.

Related: Bitcoin rally above $67.5K could spark new record highs, says 10x Research

Dog-themed memecoins rally, except SHIB and DOGE

While the two largest memecoins, Dogecoin (DOGE) and Shiba Inu, have been lagging in price action, other dog-themed memecoins have delivered double-digit weekly gains.

Solana-based Dogwifhat (WIF) rose 34%, Floki (FLOKI) rose 35%, while Bonk (BONK) rose over 25% over the past week.

Pepe also rose 26% on the weekly chart, after reaching a new all-time high a day ago, on May 27. However, Pepe fractals hint at a potential 40% price correction, if the price chart repeats the patterns from January 2024.

While predicting the start of a holistic memecoin run is difficult, some traders believe that the profits from GameStop will find their way into altcoins, similar to the 2021 bull run — as Pepe’s rally also coincided with the return of the GameStop GME stock saga.

Based on historical chart patterns, the 2021 altcoin rally was catalyzed right after the GameStop rally, according to crypto analyst CryptoAmsterdam’s May 14 X post, that referenced the below charts.

Related: Trader nets $2.7M profit in 3 days with Trump-themed MAGA memecoin