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The value of the new memecoin Pepe (PEPE) has dropped over 42% just days after hitting its peak on May 6, resulting in significant paper losses for at least one investor.
As reported by blockchain analytics platform Lookonchain, a crypto “whale” acquired 962.3 billion Pepe tokens by spending 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) at an average price of $0.000003122 on May 5.
However, PEPE has since decreased by 42% from its peak, according to CoinGecko. The current estimated value of the investor’s PEPE holdings is approximately $2.4 million, reflecting an unrealized loss exceeding $600,000.
A whale purchased 962.3B $PEPE ($2.46M currently) with 70 $WBTC ($2.07M) and 470 $ETH ($937K) in the last 2 days, with an average acquisition price of $0.000003122.
He has incurred a loss of around $541K at the present price! https://t.co/GDBdXcVyGt pic.twitter.com/7s1Ns90OOc— Lookonchain (@lookonchain) May 7, 2023
Despite the recent downturn in price, Pepe maintains a market capitalization of just over $1 billion, positioning it as the 45th largest cryptocurrency by total valuation.
Price action of Pepe (PEPE) since inception. Source: CoinGecko
Since its launch on April 14, Pepe has garnered significant attention, recording over $636 million in trading volume within the past 24 hours, and has burned more than 5,000 ETH in associated gas fees through Uniswap trading as of May 5.
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I downloaded 413,283 PEPE Uniswap transactions from @DuneAnalytics
PEPE traders have burned approximately 5,300 ETH ($10M) in gas over the last 3 weeks
1/ pic.twitter.com/9lZxGGjtT5— Alex (@thiccythot_) May 5, 2023
While the memecoin has experienced significant price fluctuations, the number of individual holders has consistently increased over the past three weeks. Data from Dune Analytics indicates there are 144,534 individual holders of the token at the time of this report.
Related: Memecoin mania: Social relevance, speculation drives PEPE surge
Individual holders of the Pepe token. Source: Dune Analytics
The rise of memecoin mania has also caused transaction fees on the Bitcoin (BTC) network to reach their highest levels in the past two years, following a substantial increase in Bitcoin activity related to BRC-20 transactions.
Memecoins have been a part of the cryptocurrency landscape since the inception of the most famous meme-based cryptocurrency, Dogecoin (DOGE), in 2013. It is important to note that due to the fundamental lack of backing, investing in memecoins can be a highly speculative trading approach, with significant amounts of wealth being both created and lost.
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