Pepes market cap sinks $1 billion in 5 days, some whales still buying

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The market capitalization of new memecoin Pepe (PEPE) has fallen $1.1 billion from its May 6 peak, although on-chain data shows it is still being bought by some crypto whales.

In the past five days, the price of memecoin has fallen over 56% from a peak of $0.00000431 to $0.00000193, according to CoinGecko.

Pepe’s bearish price action saw the total token valuation drop from a peak of $1.82 billion on May 6 to $820 million at press time.

Pepe’s market capitalization since April 20. Source: CoinGecko.

A May 8 report by researchers at crypto-fintech firm Matrixport attributed the sharp drop in Pepes prices to traders selling a large chunk of their holdings to new retail investors following the listing of memecoins on Binance, the largest crypto exchange in the world by daily trading volume.

Additionally, the report revealed that the main driver of Pepes’ soaring price action since its inception on April 14 appears to be from traders based in Asia. According to Matrixport, buying activity during Asian trading hours contributed 3,657% to the 9,071% total rise seen by memecoin as of May 8.

Pepe price performance ranked by trading hours in global time zones. Source: Matrixport.

Another data point that could provide more validation to the theory is that Ethereum deposits within 24 hours of listing memecoins on the exchange hit highs not seen since November 2021.

Crypto market intelligence firm Santiment suggested that this was largely due to early buyers of Pepe gaining profits by moving their holdings which were mostly purchased through ETH swaps on decentralized exchanges like Uniswap and 1 inch in Ether (ETH).

Despite the steep price decline over the past week, some of the most well-known and notorious whales in the crypto space are still buying Pepe at moderate price levels.

According to data from blockchain analytics firm Lookonchain, Machi Big Brother, the online persona of former tech entrepreneur Jeffrey Huang, purchased a total of 73.4 ETH equivalent to around $137,000 from Pepe over the past few years. Last 4 days, with an average buy price of $0.000002082, which sits about 3% below the current trading price.

While other memecoins such as Dogecoin (DOGE) and its canine-themed counterpart Shiba Inu (SHIB) have used their hardware success to create other applications and use cases for their respective tokens, Pepe appears to be a stab at the idea of ​​bringing value to all.

Related: PEPE’s Sudden Drop Leaves 500K Whale in the Red

Essentially, Pepes’ anonymous dev team has made it clear that the token is “completely useless,” and the humor of that alone is reason enough for investors to get into it. The official frog-themed token website has a final disclaimer that describes the token as follows:

$PEPE is a coin even with no intrinsic value or expectation of financial return. There is no formal team or roadmap. the room is completely useless and for entertainment purposes only.

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