In early May, Pepecoin (PEPE), a digital asset inspired by the well-known internet meme Pepe the Frog, boasted a market capitalization of $1.8 billion. Fast-forward two weeks, and PEPE’s market cap has tumbled to roughly $665 million, marking a significant 65% downturn. Let’s delve into the causative factors behind this.
Whales Tipping the Scales
PEPE’s major holders, often called whales, appear to be the primary force behind the steep price fall, per data monitored by Wuligy, a blockchain analyst at Dune Analytics.
Specifically, the top fifteen wallets, earning the highest profits and holding an impactful quantity of PEPE tokens around the market peak, have largely liquidated their assets over the last few weeks.
Some of these whales have offloaded their entire PEPE holdings amid the market slump.
PEPE Transactions Taper Off
Concurrently, PEPE’s per-hour transactions and volumes have significantly receded compared to their zenith on May 5, indicating a slowdown in trading activity among large and small players.
But there’s a silver lining to this cloud. PEPE’s daily number of holders has stabilized, if not decreased, following April’s dramatic surge from around 100 to over 100,000. As of May 23, the count stood over 115,000, signifying the addition of new entrants despite the faltering price.
However, it’s worth noting that some of these addresses may be linked to existing PEPE owners or possibly stand for exchange wallets. This is plausible considering PEPE’s listing on various crypto exchanges since its debut, with Bitfinex being the latest addition.