Meme Coin Frenzy Takes A Hit As Pepe Coin’s Price Falls Back
While Pepe coin was the talk of the town after a significant rise in value in the past weeks, it seems that the asset is returning to base as its prices drop significantly. The entertainment and bewilderment brought in by meme coins appear to be fading away, with investors turning back to basics.
The center of attention in the digital asset market recently was Pepe coin, which reached an all-time high of $0.00000431 on May 5. However, its current price is 60% short at $0.00000172. So, while it’s a piece of favorable news for Bitcoin users, the downtrend considerably affects other investors.
Pepe Coin’s Market Value Insights
Pepe coin’s market value at its peak stood at $1.6 billion. However, it has reverted to its current levels at $720 million. Further, despite a 1.7% rise in the market, Pepe coin is down 10.5% on the day. These insights indicate the fading interest in meme coins for the time being.
Why is Pepe Coin Seeing This Massive Decline?
Pepe coin’s price decline may be fueled by investors cashing in their profits and adopting other trading strategies, considering Pepe’s perpetual futures contracts arising in the past week. Further, the declining enthusiasm around meme coins, with Dogecoin and Shiba Inu sharing similar histories, expresses Pepe coin’s current state.
Moreover, the meteoric rise in Pepe coin has caused suspicions regarding its lack of intrinsic value and inherent utility. It has led investors to question the project’s long-term prospects and whether it’s a rise-and-crash game.
Although cashing out meme coins is trouble due to liquidity problems, Pepe coin has around $360 million in trading volume.
Does A Fall In Pepe Coin Affect Other Meme Coins?
Pepe coin’s fall has been followed by many leading investors exiting in profit. Whale Alert, one of the top cryptocurrency tracking services, revealed that one whale shifted a starking 299,999,999 Dogecoin to the Binance Exchange.
If such transactions continue happening, meme coins will reach below the critical support level and see a severe downturn. Benjamin Cowen, a popular crypt trade analyst, shared,
“Many meme coins will be forgotten by investors in the upcoming months and lost from circulation. The lost interest and no-care attitude towards these coins will be their doom.”
Did you like the news you just read? Please leave a feedback to help us serve you better
Disclaimer: Blockmanity is a news portal and does not provide any financial advice. Blockmanity's role is to inform the cryptocurrency and blockchain community about what's going on in this space. Please do your own due diligence before making any investment. Blockmanity won't be responsible for any loss of funds.