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USDP Memecoin Frenzy: $150M Market Cap Spike, Wild Gains for Sniper Wallet, and a Meager Market Maker Profit

The newest episode in the memecoin mania is a parody token named USDP, which is ironically after stablecoins, and in what way it is not like a stablecoin, triggered what can only be described as an explosive rally.

Capitalization was stratospheric—$150 million—before crashing as fast as it had risen, and even more impressive in that it fell all the way back to approximately $30 million, where it seems to have found some footing. Given that 4 it was parodying; that is, a visible reference to something that is not to be taken seriously, can anyone seriously hold memecoins as part of a viable investment strategy?

A Sniper’s Jackpot: $301 Turns Into Millions

A specific wallet—identified on-chain as 2QPFb2…QMZcPd—has captured the interest of both crypto sleuths and traders. The address, widely accepted as a sniper wallet, made an investment of just $301.57 to nab 6.71% of the whole USDP supply in the seconds after it launched. That extraordinarily tiny buy order was—at least for a few moments—unbelievably profitable, as it seemed to have turned into more than $9 million in unrealized gains. If that’s not the definition of a successful sniper trade, I don’t know what is.

According to the most recent on-chain data, the value of the sniper’s holdings has fallen back quite a bit, but it still likely sits at around $2 million—as stunning a return as you could find anywhere in traditional investing. Increasingly, though, sniper trades just aren’t that special anymore, having become in recent months another flavor of common retail trading. This is the world of automated bots and opportunistic traders. In this case, however, with sniper trading, you can rest assured that the bots are functioning quite well.

This wallet’s success, however, has raised concerns within the broader crypto community about whether such trading tactics are sustainable and fair. The early snipers in this situation also tend to be the ones making the largest waves in the price of the asset affected because of the large holdings they tend to have. They can, in fact, make it look like a price is going up when it is much more likely to be coming down.

Bundling Frenzy: Over 999 Transactions and a 6.7% Ratio

Increased on-chain activity has been observed with the USDP token, especially in bundling. This is a method of creating multiple transactions that are grouped into a single interaction. Bundling is often used by trading bots that want to optimize gas fees or execute rapidly simple trading strategies that involve multiple legs. Bots and traders have been active with the USDP. We’ve also seen relatively high on-chain activity with the token.

The data indicates that USDP had a 6.7% bundling ratio, a figure that stands out when compared to the bundling activity associated with most meme or low-cap tokens, where bundling is typically a marginal activity. At the height of USDP’s trading activity, over 999 bundling transactions were recorded, signaling intense bot activity and algorithmic trading interest.

The trend of bundling reaffirms how the memecoin market has progressed far beyond mere retail-driven price spikes. It practices the sorts of sophisticated price-setting we associate with equity markets, mechanisms in which bots and algorithmic traders compete to generate high-frequency profits (or avoid losses), thanks to the efficient nautilus of smart contracts.

Market Maker Wallets: Big Moves, Small Margins

Not every whale involved in the USDP saga ended up with a windfall. One huge market maker wallet churned through 119.6 million USDP tokens. This trading activity, to put it mildly, is not normal. If we take the churning as a sign that the USDP market maker was providing liquidity during the hype cycle, then this is also a precarious way to make a living that ended in a profit of only $7,680. Unlike the whales who bought low and sold high, this USDP market maker seems to have been a good example of the saying that providing liquidity is a service.

This dangerously narrow margin has been interpreted by some as a cautionary tale. While market makers are often assumed to profit disproportionately from selling liquidity in high-volatility environments, the USDP case shows that slippage, impermanent loss, and wild, unpredictable price swings can sometimes take out what should be expected as gains.

Indeed, some traders are wondering if this wallet’s profits were by design or if it was just caught in a memecoin maelstrom. In any event, it’s just one salvo in the ongoing debate over whether big wallets are good for the health of a market.

Conclusion: The Double-Edged Sword of Memecoin Momentum

USDP’s meteoric rise and fall in 2025 encapsulates both the allure and the danger of memecoin speculation. A fortunate sniper wallet turned a few hundred bucks into millions, while other actors—including market makers—barely broke even after trading millions in volume. The incident bundles, trades at lightning speed, and sudden price action made for an all-too-typical afternoon in this corner of the crypto world, now dominated by algorithmic strategies and increasingly influential economic forces.

The unpredictability, high risk, and absurdly rewarding nature of today’s memecoins are epitomized by the rise and likely fall of something called USDP. Pricing a reward system for a memecoin like this is, of course, already silly and warranting of some eye-rolls. But it gets sillier.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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