$8M Long on 11 Meme Coins Whale's Overall Profit Narrows to $1.75M, Previously Peaking at Over $3.3M

A whale with an $8M long position in 11 meme coins has seen its profit shrink to $1.75M, down from a peak of $3.3M. The decline reflects the recent volatility in the meme coin market, where trading activity and price swings remain pronounced. Investors are closely watching how these tokens perform amid broader market shifts.

The narrowing of the whale's profit highlights the risk profile of meme coin investments, which are often driven by speculative trading and social media trends. Despite the profit dip, the whale has maintained its position, indicating continued confidence in the long-term potential of the selected coins.

The broader crypto market has experienced mixed sentiment. Solana's memecoin market has driven PumpSwap to a record $1.2 billion in daily trading volume. The surge reflects renewed interest in high-beta Solana-based tokens. However, fee generation from these trades has been modest at $2.98 million on January 5.

Why Did This Happen?

The recent decline in the whale's profit coincides with a broader correction in the meme coin space. Market participants have been rotating into higher-risk assets, particularly on Solana, as liquidity improves post-holiday. The increased trading activity does not always translate into higher fees due to competition between platforms and fast-in/fast-out trading behavior.

The whale's position is affected by market dynamics that prioritize momentum and sentiment over fundamentals. Meme coins are especially sensitive to retail investor behavior and social media sentiment. This makes their price movements difficult to predict and highly volatile.

What Are Analysts Watching Next?

Analysts are monitoring PumpSwap's ability to sustain its high trading volumes. The record $1.28 billion in 24-hour volume suggests strong interest, but it remains to be seen whether this will translate into long-term profitability. Sustained volume is essential for platforms to generate meaningful fees and attract more institutional participation.

Mutuum Finance, a decentralized lending and borrowing protocol, has also drawn attention with over $19.6M raised in its presale. The project is now in Phase 7, with its token priced at $0.04. The presale model has driven demand, with 825M tokens sold so far and 18,750 holders participating.

Regulatory and legal actions in traditional finance are also influencing the broader market. Blue Owl Capital Inc. is facing multiple lawsuits alleging securities law violations. Shareholders who purchased shares between February 6, 2025, and November 16, 2025, are encouraged to register with law firms like The Gross Law Firm (before February 2, 2026, to discuss your rights) and Glancy Prongay & Murray LLP (and Bernstein Liebhard LLP) announces a securities fraud class action lawsuit. These legal actions highlight the ongoing regulatory scrutiny across both traditional and digital asset markets.

Investors remain cautious as they assess the risks of both crypto and traditional markets. The recent drop in the price of ZEC and increased activity in short positions illustrate the challenges of navigating volatile markets. The interplay between retail trading behavior and institutional moves continues to shape market outcomes.

The regulatory landscape is also evolving, with Morgan Stanley recently filing for a spot Bitcoin ETF. This development signals a growing acceptance of crypto among traditional financial institutions. As more products enter the market, investors will need to evaluate how these tools fit into their risk-return profiles.