The market capitalization of memecoin Pepe (PEPE) is down $1.1 billion from its May 6 peak, even as on-chain data shows some crypto whales are still buying the token.
According to data from CoinGecko, the price of the memecoin has plummeted more than 56% over the past five days, falling from a peak of $0.00000431 to $0.00000193. Pepe’s decline has caused its market capitalization to drop from a peak of $1.82 billion on May 6 to $820 million at press time.
Pepe’s market capitalization as of April 20 | Source: CoinGecko
According to a May 8 report by researchers at cryptocurrency fintech firm Matrixport, Pepe’s price drop was due to traders selling large numbers of tokens to investors who sold their tokens. Oddly enough, the daily trading volume comes after this memecoin was listed on Binance, the world’s largest cryptocurrency exchange.
Additionally, the report shows that Pepe’s biggest bullish momentum since its launch on April 14 appears to have come from Asian traders. According to Matrixport, the total gain received by the memecoin since May 8 was 9.071%, with buying activity during Asian trading hours contributing 3,657%.
Pepe Price Performance by Global Time Zone Trading Hours | Source: Matrixport.com
Another statistic that could lend more validity to the above theory is that in the 24 hours after the memecoin was listed on exchanges, Ethereum deposits rose to the highest level since November 2021. Cryptocurrency market researcher Santiment attributes this to early Pepe buyers selling tokens to secure their profits.
🚀 Update our report #EthereumSky-high active deposits, exchange addresses interacting on the network, are now at their highest level since November 2021. as expected, $ ether It is showing signs of decoupling and is about to break through $2000 again. https://t.co/zYjY7669yj https://t.co/dQlKsTVyt2 pic.twitter.com/2nMXOUGgYC
– Santiment (@santimentfeed) May 5, 2023
Some of the most famous (and notorious) whales in the crypto space are still buying Pepe at low prices despite the massive price drop over the past week. According to data from blockchain analytics firm Lookonchain, former tech entrepreneur Jeffrey Huang’s online account “Machi Big Brother” purchased a total of 73.4 ETH (about $137,000) of Pepe memecoin in the past four days. The price is $0.000002082, which is about 3% lower than the current trading price.
Brother Maji bought 6B $PEPE It was 30 minutes ago again.
He bought a total of 66B $PEPE 73.4 $ ether ($137K) Over the past 3 days, the average bid price was $0.00002082.https://t.co/8TP6j6unZw pic.twitter.com/Ubmg3ZC1rm
— Lookonchain (@lookonchain) May 10, 2023
While other memecoins like Dogecoin and similar competitors like Shiba Inu have successfully used their platforms to build new applications, Pepe seems like a completely worthless idea. .
Essentially, Pepe’s anonymous development team has made it clear that the token is “completely useless” and that humor alone is enough to get investors to try and splurge. The token’s official website also states the following disclaimer: “PEPE is a meme coin with no intrinsic value or expectation of financial return. There is no official team or development roadmap. This token is completely useless and intended for entertainment purposes only.
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As reported by Cointelegraph