Ah-ribbit! Pepe the Frog is back in the spotlight; the cryptocurrency token of the same name has seen a recent surge in the market – only to be swiftly followed by a fall in its market cap of over $1.1 billion. Despite the price slip, the Pepe token is still going strong, with plenty of interest from crypto whales.
It all started two weeks ago, when Pepe (PEPE) was launched as an ERC-20 token, shortly followed by gaining a spot in the top 100 largest cryptocurrencies, with a market cap just under $600 million. An investor even managed to turn $250 into over a million in the span of a few days. The buying power was so strong that the token moved up the ranks and surged 111% in the last 24 hours alone. Logically, with such a slip in price and an exodus of investors, one would expect Pepe to have suffered. However, the reality is far different.
Asian Trading Activity Propels Pepe Price
According to a report by crypto fintech firm Matrixport, Pepe’s meteoric price action was mostly driven by Asian trading activity. In fact, the trading volume experienced after its listing on Binance, world’s largest crypto exchange, was so large, that Ethereum deposits in the 24 hours following the listing reached heights unseen since November 2021.
Yet, despite the price slump, some of the better known (and notorious) crypto whales are still investing into Pepe. Lookonchain reported that ‘Machi Big Brother’, the online persona of the former tech entrepreneur Jeffrey Huang, has purchased an equivalent of about $137,000 worth of Pepe tokens in the past four days.
The Rise of Memecoins and BTC Fees
The market interest in memecoins such as Pepe and Dogecoin (DOGE) shooting off recently has also been a game-changer in the cryptocurrency industry. Fees on the Bitcoin (BTC) network have also surged to their highest levels in the past two years due to a rise in BRC-20-related transactions.
The Pepe development team have made it clear that the token is “completely useless.” To many, the humor of this fact is the impetus for the coin’s success. The token, then, acts as a vehicle for investors to make a riskier, almost gamified trade – as evidenced by the investor who made a million dollars out of a few hundred-dollar purchase.
Risky Memecoin Investing: Research Before You Leap!
Investing in memecoin, however, still remains an incredibly risky move – within an hour, one can make millions or lose vast sums of wealth. Thus, it is critical to thoroughly research and understand the fundamentals of any token before investing in it.
In the end, it’s uncertain what new record Pepe and other memecoin tokens will topple next, but it’s clear the memecoin frenzy in cryptocurrency markets isn’t stopping anytime soon. Who knows – you could be one of the next lucky Frogs to froggie boogie on a million dollars!
Disclaimer: Cryptocurrency trading involves significant risks and may result in the loss of your capital. You should carefully consider whether trading cryptocurrencies is right for you in light of your financial condition and ability to bear financial risks. Cryptocurrency prices are highly volatile and can fluctuate widely in a short period of time. As such, trading cryptocurrencies may not be suitable for everyone. Additionally, storing cryptocurrencies on a centralized exchange carries inherent risks, including the potential for loss due to hacking, exchange collapse, or other security breaches. We strongly advise that you seek independent professional advice before engaging in any cryptocurrency trading activities and carefully consider the security measures in place when choosing or storing your cryptocurrencies on a cryptocurrency exchange.