The price of the new memecoin Pepe (PEPE) has plunged more than 42% just days after hitting its all-time high on May 6, leaving at least one investor with hundreds of thousands of paper losses.
According to the blockchain analytics service lookonchainA crypto “whale” bought 962.3 billion Pepe tokens using 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) for an average price of $0.000003122 on May 5.
PEPE has, however, fallen 42% from its all-time high since then, according to CoinGecko. The crypto investor's PEPE holdings are now estimated to be worth just $2.4 million, marking an unrealized loss of more than $600,000.
A whale bought 962.3B $PEPE(currently $2.46M) with 70 $WBTC ($2.07M) and 470 $ETH ($937K) in the last 2 days, with an average purchase price of $0.000003122.
You have lost ~$541K at the current price!https://t.co/GDBdXcVyGt pic.twitter.com/7s1Ns90OOc
— Lookonchain (@lookonchain) May 7, 2023
Despite the recent price drop, Pepe still has a market capitalization of just over $1 billion, making it the 45th largest cryptocurrency by overall valuation.
Since its inception on April 14, Pepe has drew widespread attentionwitnessing over $636 million in trading volume in the last 24 hours, and burning over 5,000 ETH with no help in related gas fees via Uniswap trades as of May 5.
I downloaded 413,283 PEPE Uniswap transactions from @DuneAnalytics
PEPE traders have burned ~5300 ETH ($10 million) in gas over the last 3 weeks
—Alex (@thiccythot_) May 5, 2023
While the memecoin has seen extreme volatility in its price, the number of individual holders has steadily increased over the past three weeks. According to Dune Analytics data, there are 144,534 individual token holders at press time.
Related: Memecoin mania: social relevance, speculation drives PEPE rise
The advent of memecoin mania has also boosted fees on Bitcoin (BTC) hit its highest levels in two years, following a huge spike in Bitcoin activity involving BRC-20 Related Transactions.
Memecoins have played a role in the cryptocurrency industry since the creation of the most widely recognized meme-based cryptocurrencyDogecoin (DOGE), in 2013. It is worth noting that due to the inherent lack of fundamentals, investing in memecoins can be an incredibly risky trading strategy, with vast amounts of wealth being created and destroyed in equal measure.
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