A ‘diamond trader’ has managed to, over the course of five months, turn around $1,360 into over $2.3 million to secure a gain of over 170,000% after spending 12 Solana (SOL) tokens to buy a meme-inspired cryptocurrency late last year.

According to on-chain analysis service Lookonchain, the trader bought 5.21 million $PONKE tokens on December 24, 2024 and has since held onto them as the price of the cryptocurrency rose, with their holdings now being worth $2.32 million.

The price of the meme-inspired cryptocurrency has recently surged amid a wider cryptocurrency market rally that saw the space add over $200 billion to its market capitalization.

The catalyst for the broader market surge appears to be news related to the potential approval of spot Ether exchange-traded funds (ETFs) in the U.S as the Securities and Exchange Commission (SEC) has abruptly requested that the exchanges that want to list and trade these funds update key filings related to these products, fueling speculation that the regulator is considering approving these products.

Before any trading can begin, issuers of spot Ether ETFs must receive the go-ahead on their S-1 registration statements, with the SEC having no set deadline to review these filings.

The SEC’s ongoing investigation into Ether, the native cryptocurrency of the Ethereum blockchain, has intensified over the last few months, especially after the network’s transition to a Proof-of-Stake protocol.

Should Ether be classified as a security, it could provide the SEC with a basis to deny the applications for spot Ether ETFs.

Featured image via Pixabay.