$WIF Whale Goes Long, Borrows $3.2M with Liquidation Price Set at $0.75

Spearheading a wave of optimism throughout the memecoin community, dogwifhat’s ($WIF) top holder has sized up their considerable position. 

Catapulting to notoriety following their historic $8.92M buy in December 2023, the trader has leveraged Solana DeFi tools to add 1.8M $WIF to their holdings.

$WIF Whale Borrows $3.2M, Adds to $WIF Bags

Since August 19th, the $WIF whale has deposited just under 21.9M $WIF tokens in Kamino Finance, Solana’s top lending market by TVL (Total Value Locked). 

Against over $35M in collateral, the emphatic $WIF maxi then borrowed $3.26M USDC at an LTV (Loan-to-Value) ratio of 9.1%. Using $2.7M of the borrowed funds, the trader proceeded to buy 1.8M $WIF tokens, adding further weight to their already significant position.

Using Phantom’s Wallet watch feature, network participants can easily track the loan’s liquidation price. Based on Kamino estimations, the $WIF whale’s position will be liquidated if $WIF falls below $0.75, provided the trader doesn’t support the loan with additional collateral.

According to Step Finance, the wallet currently holds 22.73M $WIF tokens, currently valued at approximately $36.8M. At press time, 96.33% of the trader’s total $WIF holdings are being used as collateral, meaning that a potential market crash could spell disaster for the trader.

Disclaimer: SolanaFloor is owned and operated by Step Finance

However, the chances of $WIF tumbling back below $0.75 in the near term are small. Solana’s largest memecoin by market capitalization, $WIF hasn’t traded at this price since February and has not fallen below $1 since claiming the level in March 2024.

According to Lookonchain, the analysts who initially spotted the trader’s behavior, the wallet currently sits on a total profit of $68M since first acquiring the asset in December 2023.

$WIF Responds with Renewed Confidence

With its largest holder adding to its position, $WIF appears to have attracted fresh demand. After consolidating at a local bottom around the $1.34 mark on August 19th, $WIF has surged by 23.88%, currently exchanging hands at $1.66 based on Step Finance data.

While one could argue that $WIF’s top holder was the direct cause of this price action, the trader’s $2.7M buy only accounts for 0.2% of $WIF’s total trading volume since August 19th, according to CoinMarketCap historical data.

$WIF’s change in momentum comes at a welcome time for Solana’s meme economy. The sector has recently suffered diminishing attention on account of saturation and increased interest in the Tron ecosystem, which recently launched its own pump.fun competitor.

Read More on SolanaFloor

Solana’s original staking provider ramps up rewards
The Road to 10% APY: Optimizing SOL Staking with Marinade

Why Are Memecoins Such a Big Deal?