After its launch in mid-April, PEPE quickly became a craze in the encryption industry. Its price has soared a staggering 638% in the past week, with a whopping 90% increase in the most recent 24 hours. The property’s market value also jumped to nearly $700 million.
Part of the reason for the storm could be the overall positive market sentiment following the recent rate hike by the US Federal Reserve or whales swapping assets. Take PEPE as an example. Last but not least, popular rapper Soulja Boy also interacted with the meme coin on Twitter.
market goes green
PEPE’s impressive price gains have been driven in part by current positive cryptocurrency market conditions. Shortly after the Federal Reserve announced a 25 basis point rate hike, Bitcoin and most altcoins rallied.
While the policy has caused prices to move in the opposite direction in the past, this time is different as many economists predict it will be the last rate hike amid fears of an impending recession. Gregory Daco – Chief Economist, EY-Parthenon explain:
“I don’t think the inflation war is over yet, but we’re in a gradual deflationary situation and we’re in an environment of higher and higher interest rates. So business activity will be constrained, leading to further deflation in the coming months.”
However, the increase of PEPE in the past 24 hours is much higher than that of cryptocurrencies with large market capitalizations such as BTC, ETH, BNB, which means that there are more factors behind the price increase.
price chart PEPE 4 hours | Source: trade view
whale activity
The rapidly rising price of the token seems to have caught the attention of some whales.According to the blockchain analysis platform watch chainsuch a holder has exchanged almost all of his assets for PEPE.
Specifically, he traded $590,000 in WBTC, $90,000 in CULT, $235,000 in UNI, and $37,000 in ETH in exchange for $1.72 trillion in PEPE. The platform claims investors have made paper profits of more than $1 million.
source: watch chain
Earlier this week, other whales took advantage of the surge to profit handsomely.spot winding disclosure A given holder swaps 3.4 billion PEPE for 925 ETH (equivalent to $1.8 million at the time of the transaction), a return on investment (ROI) of 1,650x within two weeks.
celebrity interaction
The immense popularity of PEPE has even attracted celebrities to join the ecosystem. The famous American rapper DeAndre Cortez Way (aka Soulja Boy) is a typical example.
The single “Crank That” was written by disclosure In his most recent tweet, he “made a fortune with PEPE”. However, he did not specify his specific actions or the actual amount of money he earned.
The musician is no stranger to the crypto world.He released a song dedicated to Bitcoin in 2018, and in 2021, he explain I own BNB, TRX, DGB and other tokens. Soulja Boy is even considering creating his own token.
General Fever and FOMO
The hype surrounding PEPE could be another factor in attracting new investors and driving up prices. People tend to follow trends and join high-profile projects.
This is fear of missing out (FOMO), and it happens a lot in the crypto space. Over the years it has been linked to other meme coins such as DOGE and SHIB which at some point had huge bullish charts similar to PEPE.
While memecoin sounds like an asset that could make anyone rich overnight, it’s worth noting that there are certain challenges for inexperienced investors, such as security risks and heightened market volatility.
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According to Crypto Potato
