The memecoin market recently experienced a seismic shift as Pepe (PEPE), a new entrant, saw a dramatic decline of 60% within five days. This precipitous fall wiped a staggering $1.3 billion off its market capitalization, sending ripples through the cryptocurrency ecosystem.
Pepe Market Evolves As Expected
Between May 6 and May 10, the price of Pepe plunged from a zenith of $0.00000431 to a nadir of $0.00000165, as per CoinGecko’s market data. This drastic downturn led to the token’s total valuation shrinking from a high of $1.82 billion to under $700 million, sparking significant market debate.
A comprehensive study by Matrixport, a leading crypto fintech firm, suggested that Pepe’s abrupt price plunge could be attributed to large-scale traders liquidating sizeable portions of their holdings. This sell-off, targeted at new retail investors, occurred shortly after Pepe’s listing on Binance – the world’s top-ranking crypto exchange by daily trading volume.
Interestingly, the report highlighted that a considerable portion of Pepe’s skyrocketing price activity since its birth on April 14 has originated from Asia-based traders. Matrixport disclosed that the buying frenzy during Asian trading hours contributed a staggering 3,657% to the memecoin’s total 9,071% rally as of May 8.
Ethereum Deposits Surge Post Pepe’s Listing
Another intriguing development was the sharp rise in Ethereum deposits in the 24 hours following Pepe’s Binance listing. This surge reached levels unseen since November 2021. Santiment, a respected crypto market intelligence firm, speculated that early Pepe adopters secured profits by converting their holdings—majorly procured through ETH swaps on decentralized exchanges like Uniswap and 1inch—back to Ether.
Despite Pepe’s alarming price dip over the past week, certain prominent and audacious whales in the crypto space continue to acquire Pepe at its subdued price points. For example, Lookonchain, a notable blockchain analytics firm, revealed that “Machi Big Brother,” the online avatar of ex-tech entrepreneur Jeffrey Huang, purchased 73.4 ETH worth of Pepe in the last four days. The Pepe tokens were purchased at an average price of $0.000002082, sitting approximately 3% below the current trading rate.
Pepe: The Intriguingly ‘Useless’ Memecoin
Pepe’s anonymous development team has humorously declared the token as “completely useless.” The team states on the frog-themed token’s official website: “$PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no formal team or roadmap. The coin is completely useless and for entertainment purposes only.“
Despite the humorous undertone, the precarious nature of this project should prompt potential investors to exercise caution. The collapse of popular meme coin PEPE is not a question of “if,” but “when.” Thus, it seems prudent for anyone with common sense to maintain a safe distance from this memecoin.
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