Pepecoin (PEPE) tokens were issued in mid-April and quickly gained popularity among investors, reaching a market capitalization of $1.8 billion in just over three weeks. However, the meme coin’s journey took a downward turn as the token dropped nearly 45% from their peak on Friday, causing a ripple of concern among investors.
Some speculate that the sudden price drop was due to traders taking profits on their positions, while others point to the introduction of Pepe-tracked futures as a possible cause.Â
Either way, the Pepe token’s once-promising journey has hit a snag, leaving investors wondering whether this amphibian-inspired cryptocurrency can regain its footing and hop back into the limelight.
PEPE Token’s Value Down After Short-Lived Rally
As of writing, the PEPEUSD token’s price on CoinGecko stands at a mere $0.00000233, having fallen 10.6% in the past 24 hours. This comes as a disappointment to investors who had witnessed a remarkable seven-day rally, during which the token’s value had surged by a staggering 221.0%.
The sudden downturn in the PEPEUSD’s value is a reminder of the volatility that characterizes the world of cryptocurrency. Despite the promising rally of the past week, the token’s current price suggests that caution is still warranted for those considering investing in this meme-inspired digital currency.
Crypto total market cap weakens to $1.12 trillion. Chart: TradingView.com
Following an unprecedented surge in value that saw PEPEUSD rise by almost 5,000,000% in just a few weeks, holders of the altcoin may be capitalizing on their gains by selling off their positions. This is reflected in the significant decline in the token’s value, which previously reached a peak of $0.00000431.
Pepecoin had quickly taken the crypto market by storm, and in just over three weeks since its issuance in mid-April, it had achieved a market capitalization of $1.8 billion. However, the sudden drop in value indicates that the token’s meteoric rise may have been too good to last, and investors may be re-evaluating their positions accordingly.
PEPEUSD Profits Converted To Ether As Deposits Hit New High
Following the massive surge in Pepecoin’s value, investors are reportedly taking profits by converting their holdings into Ether (ETH), which recently hit an all-time high in deposits to exchanges since November 2021 when it reached a high of $4,500.Â
🚀 Updating our report on #Ethereum‘s sky-high active deposits, exchange addresses interacting on the network is now at its highest level since November, 2021. As expected, $ETH is showing decoupling signs and on the cusp of breaking $2k once again. https://t.co/zYjY7669yj https://t.co/dQlKsTVyt2 pic.twitter.com/2nMXOUGgYC
— Santiment (@santimentfeed) May 5, 2023
On Monday, Santiment, an on-chain analytics firm, suggested in a tweet that the rising number of Ether deposits could be a result of traders cashing out their Pepe positions.
The Pepecoin rally has seen some investors turn small investments into significant profits within just a few days after the coin’s issuance.
However, with the recent drop in the token’s value and the high volatility of cryptocurrency in general, investors should proceed with caution and conduct thorough research before investing in any digital currency.Â
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk)
-Featured image from Alabama Cooperative Extension SystemÂ
