The market capitalization of new memecoin Pepe (PEPE) has fallen $1.1 billion from its peak on May 6, although on-chain data shows it continues to be bought up by some crypto whales.
According to CoinGecko, the price of Memecoin has fallen by more than 56% over the past five days, falling from a high of $0.00000431 to a low of $0.00000193.
The drop in PEPE’s price caused the total valuation of the token to fall from a high of $1.82 billion on May 6 to $820 million at press time.
A May 8 report from researchers at crypto funding firm Matrixport attributes the sharp decline in PEPE price to traders who sold their holdings in large quantities to new retail investors following the listing of Memecoin on Binance.
Furthermore, the report found that the biggest driver of PEPE’s meteoric price action since its inception on April 14 is coming from Asia-based traders. According to Matrixport, buying activity during Asian trading hours contributed a staggering 9,071% to the total rally seen by May 3,657 as of May 8.
Another piece of information that may lend more validity to the theory is that Ethereum deposits in the 24 hours following Memecoin’s listing on the exchange reached a maximum not seen since November 2021.
Cryptocurrency market intelligence firm Sentiment suggested that this was largely because early buyers of PEPE took profits by moving their holdings – which were purchased via ETH swaps on decentralized exchanges such as Uniswap and 1inch – to new to Ether (ETH).
Despite the sharp drop in price over the past week, some of the most famous and notorious whales in the crypto space are still buying PEPE at low price levels.
According to data from the analysis firm, lookunchain “Machi Big Brother”, the online persona of former tech entrepreneur Jeffrey Huang, has bought a total of 73.4 ETH – the equivalent of nearly US$137,000 – of PEPE over the past 4 days, with an average purchase price of USD 0.000002082, which is almost as much as the current trading price. 3% less.
While other memecoins, such as Dogecoin (DOGE) and its dog-themed counterpart Shiba Inu (SHIB), have used their physical success to create more applications and use cases for their respective tokens, PEPE capitalized on the idea of providing Taking a stab at absolute value.
Essentially, the anonymous PEPE development team has made it clear that the token is “completely useless,” and the humor of it alone is a good enough reason for investors to “jump on.” The official website for the frog-themed token includes a final disclaimer that describes the token as follows:
“PEPE is a memecoin with no intrinsic value or expected financial returns. There is no formal team or roadmap. The coin is completely worthless and is for entertainment purposes only.”