In recent weeks, the cryptocurrency space has witnessed a remarkable turn of events as Pepecoin (PEPE) overtakes the likes of Dogecoin (DOGE) and Shiba Inu (SHIB) in terms of trading volumes. While many have been left wondering what is behind the sudden surge of this once-obscure token, the most apparent reason appears to be early buyers taking profits.
Pepecoin (PEPE) is a meme-inspired cryptocurrency that has seen its value soar in recent weeks. While many had dismissed it as yet another “joke” token, its value has risen by over 2,000% in the past month alone. This surge in value has propelled it past Dogecoin and Shiba Inu, two of the most popular meme-inspired tokens in the market.
At first glance, it may seem absurd that a token with such a seemingly niche appeal could have such an impact on the market. However, when you look at the circumstances behind its sudden rise, it becomes apparent why PEPE has captured the imagination of crypto traders and investors.
Firstly, PEPE has a relatively low market cap compared to other meme tokens like DOGE and SHIB. This means that it is more susceptible to sudden changes in demand and supply, which can cause its value to swing wildly in either direction. However, this also means that investors who get in early stand to benefit significantly if the token gains widespread popularity.
Furthermore, the surge in PEPE’s value can be largely attributed to early buyers taking profits. Those who invested in PEPE when it was still a relatively unknown token would have seen their investments multiply many times over in the past month. As such, many have been cashing in on their profits, leading to a flood of supply in the market.
This sudden influx of supply should have hurt the value of PEPE in theory. However, demand for the token has continued to rise, with many traders and investors seeing the dip in its value as a buying opportunity. This means that while early buyers are cashing in on their profits, new investors are stepping in to take their place.
Another factor that has contributed to PEPE’s rise is its association with the controversial internet figure, Pepe the Frog. Pepe the Frog is a cartoon character that has been co-opted by far-right groups over the years, leading to widespread criticism and condemnation. However, in recent times, there has been a movement to reclaim the character from its far-right associations and turn it into a symbol of positivity and inclusivity.
In this context, PEPE has been seen by many as a way to support this movement and express solidarity with those seeking to reclaim Pepe the Frog. This has added an extra layer of appeal to the token, leading to a surge in demand from those who see it as a way to support a cause they believe in.
The rise of PEPE and its overtaking of more established meme tokens like DOGE and SHIB is a testament to the unpredictable and often irrational nature of the cryptocurrency market. While many may still dismiss it as a “joke” token, its sudden rise has caught the attention of traders and investors alike, leading to a flurry of activity in the market.
Only time will tell whether PEPE is here to stay or whether it will fade back into obscurity like so many other obscure tokens. However, its rise serves as a reminder that anything can happen in the world of cryptocurrencies, and even a seemingly niche token can capture the imagination of traders and investors if the conditions are right.
The latest memecoin to enter the crypto market, pepe token (PEPE), has made quite a splash. In fact, the token surpassed the trading volumes of established memecoins dogecoin (DOGE) and shiba inu (SHIB) within a short period of time. In the past 24 hours alone, trading volumes for pepe tokens surged to over $250 million, compared to $225 million for dogecoin and $100 million for shiba inu.
According to data from CoinGecko, the majority of trading activity for pepe tokens has been generated by automated bots that continually buy and sell the tokens in order to generate liquidity for investors. However, with a trade of more than $100,000, pepe prices on OKX can dip as much as 2%. In comparison, a dip in dogecoin prices on OKX would require a trade of $800,000, partly because of its higher market capitalization and overall liquidity.
Early buyers of pepe tokens, who turned initial capital of just $1,200 into over $9 million in just a few days, are now beginning to take profits. This has led to selling pressure and an 18% drop in the token’s price over the past 24 hours.
Despite this, buying activity for pepe remains strong, with 6,500 buys compared to 3,300 sells in the past 24 hours, according to DEXTools data. This could be a sign of bullish sentiment and investor interest in the memecoin.
However, it’s important to note the speculative and volatile nature of memecoins in general. As CoinDesk previously reported, investors who bought large amounts of pepe after its issuance on the Ethereum blockchain could potentially face significant risks if the token’s price were to experience a steep drop.
Overall, while pepe token’s trading volumes may have surpassed those of established memecoins dogecoin and shiba inu, investors should still exercise caution and do their own research before investing in any cryptocurrency, particularly those that are considered memecoins.