Trader makes over $1.6m from Solana meme coin, will this new token follow suit?

The cryptocurrency market has been full of surprises, with several under-the-radar coins suddenly surging. For example, one trader recently made over $1.6 million by getting in early on a Solana-based meme coin that rallied exponentially in the past month. Now, some speculate that Sponge V2 could be the next token to breakout.

Meme coin mania helps trader become crypto millionaire in days

In some instances, the recent meme coin mania has produced eye-catching returns for early investors.

One trader in particular reaped heavily from Dogwifhat (WIF), a dog-themed token that soared in early December.

The trader turned an initial investment of $226,000 into an enormous $1.69 million in just five days – representing gains of 650%.

Just before the token’s rally, the trader purchased over 19 million WIF tokens for around $0.01137 each in mid-December.

The token’s price rocketed higher as hype around WIF began to explode on social media.

Within days, the value of the trader’s tokens had ballooned, allowing them to pocket profits of $1.47 million from an incredibly well-timed bet on a low-cap meme coin.

BONK leads the pack in Solana

The hype around WIF can largely be attributed to Bonk (BONK), a meme coin that has been making headlines in recent weeks.

Launched on Solana in December 2022, BONK features a minimalist cartoon Shiba Inu, surrounded by a yellow circle.

Despite its familiar branding, BONK has been on a downward trend for most of 2023, hitting a yearly low of $0.00000017 in mid-October.

However, much has changed for BONK in recent weeks, with its prices exploding, helping it hit a market cap of over $1.2 billion at the time of writing.

This rally can be attributed to several factors, such as the huge returns posted by SOL, Solana’s native coin.

Additionally, listings on exchanges like Binance and Coinbase made it easier for users to access, driving demand.

Currently, BONK ranks as the world’s third-largest meme coin by market cap, surpassing Pepe (PEPE).

Although not directly related, WIF benefited from the increased attention and investor interest in Solana-based meme coins spurred by BONK’s rally.

Is Sponge V2 next?

Building on WIF and BONK gains, some speculators believe a new token, Sponge V2 , could be poised for similar gains.

Sponge V2 is the next iteration of Sponge (SPONGE), a community-driven meme coin that had a peak market cap of $100 million earlier this year.

The original SPONGE surged before prices sharply fell.

Its developers are now resetting it with a V2 token and a new staking model.

SPONGEV2 is already generating traction from retail investors, even though the token was only announced on December 18.

The Sponge ecosystem already has an established community, evidenced by more than 23,000 followers on X.

Moreover, the developers have laid out plans for the future of SPONGEV2, which include a new play-to-earn (P2E) game allowing gamers to earn more tokens in an engaging way.

To acquire SPONGEV2, investors must buy and stake the original SPONGE token using the widget on the Sponge.vip website or stake their existing holdings if applicable.

Staked SPONGE will permanently lock up the supply while rewarding holders with SPONGEV2 tokens over four years, based on the staked amount.

Naturally, this approach could help drive scarcity and incentivize long-term holding.

If Sponge V2 captures even a fraction of the mania that WIF or BONK have seen, there’s a growing belief it could be the next low-cap meme coin to produce enormous gains for early investors.