Whales Buy the Dip on Solana Meme Coins Dogwifhat, Popcat, Anticipating the Start of a Meme Coin Supercycle

Recent data reveals strong whale buying activity amid the latest crypto crash, indicating that a local bottom could be close.

Recent data reveals strong whale buying activity amid the latest crypto crash, indicating that a local bottom could be close.

In particular, whales are buying the dip on Solana meme coins, likely anticipating the start of a meme coin supercycle. Prominent large-caps including Dogwifhat (WIF) and Popcat (POPCAT) are in high demand, as are low-caps like FWOF and MICHI.

A new Solana Layer-2 token, Solaxy (SOLX), is also seeing significant interest during its ICO and has raised nearly $10 million in early investments.

The latest crypto market crash is a part of the broad-based decline in global financial markets, triggered by an increase in the US Federal Reserve’s hawkish stance following upbeat November jobs data.

U.S. job openings in November increased by 259,000 to 8.098 million, beating the market expectations of 7.730 million. The positive JOLTS report indicates stronger-than-expected labor market conditions, which are often viewed as a precursor of inflation.

Following the strong November job openings report, the 30-day Federal Funds Futures is no longer anticipating an interest rate cut in 2025 Q1, a bearish scenario for risk-on assets like stocks and crypto.

Meanwhile, the US Dollar Index — which has an inverse relation with equities and crypto – reached its highest level since November 2022.

The recently revealed minutes from the Fed’s December meeting show concerns regarding inflation levels, exacerbated by tariff policies. The Fed’s hawkish stance doesn’t bode well for risk assets and could signal more downside volatility.

Moreover, concerns regarding a potential Bitcoin sell-off from President Joe Biden’s outgoing Department of Justice (DOJ) worsened the crypto market crash, with the Bitcoin price slipping below $93,000.

Whales Buy The Dip On Solana Meme Coins Dogwifhat, Popcat

There is a strong possibility the cryptocurrency market has overreacted to the November JOLTS report.

For instance, the December ADP jobs report signals a weakening labor market, paving the way for the Fed to continue its quantitative easing.

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Fed Governor Chris Waller has also backed more rate cuts, disagreeing with the assessment that President Trump’s tariff program will contribute to inflation.

Furthermore, experts believe that it is unlikely that Biden’s DOJ will sell its Bitcoin holdings 10 days before Donald Trump’s inauguration, despite getting the all-clear to do so. The crypto market could, therefore, see a strong bounce-back in the coming weeks, especially near Trump’s inauguration on January 20th.

Unsurprisingly, whales are buying the dip, with Solana meme coins in high demand. Data from Lookonchain reveals that a whale purchased nearly $13.34 million worth of Dogwifhat ($WIF), $3.83 million worth of Popcat ($POPCAT), $922k of $FWOG, and $467k of MICHI, all on Wednesday.

A mysterious whale bought 7.25M $WIF($13.34M), 5.77M $POPCAT($3.83M), 4.57M $FWOG($922K), and 3.9M $michi($467K) today.

Address:https://t.co/vBJwiesB3chttps://t.co/qY0DD5sQhE

The whale is clearly anticipating a meme coin mania in the coming weeks.

Popular investor Arthur Hayes has also revealed that he will buy the dip on Bitcoin if Biden’s DoJ does offload its Silk Road holdings.

New Solana Layer-2 Token ICO Solaxy In High Demand

Besides the aforementioned Solana meme coins, a new cryptocurrency Solaxy (SOLX) is also attracting significant interest. The SOLX presale has already raised nearly $10 million in its Initial Coin Offering (ICO).

Being the first prominent Solana layer-2 project, investors are viewing SOLX as a beta bet on SOL.

Solana has branded itself as a highly scalable blockchain. However, recent history suggests that it faces similar struggles to Ethereum, especially during periods of extreme congestion. For instance, nearly 75% of SOL transactions were failing at one point during last year’s meme coin mania.

Considering the upcoming meme coin supercycle, Solaxy’s roll-up technology could prove to be a game-changer. It will bundle SOL transactions into batches, process them off-chain, and publish the state change on the Solana mainnet.

Despite Solaxy’s lofty ambitions, SOLX is still a micro-cap meme coin. Unsurprisingly, prominent investors are eyeing 1