Pepe Coin, which entered the cryptocurrency market just last month, quickly gained traction and became a popular choice among traders for potential short-term profits. Additionally, investors redirected funds towards this new meme coin, hoping for significant returns.
However, the initial excitement surrounding Pepe Coin has gradually waned. Glauber Contessoto, a millionaire from Dogecoin investments, recently expressed on Twitter that Pepe Coin is now “officially dead.”
In 2021, Glauber Contessoto gained recognition as a Dogecoin millionaire. He achieved this status after investing approximately $250,000 in DOGE. Within a few months, his investment experienced substantial growth. When Contessoto initially purchased the meme coin, Dogecoin was valued at around 4.5 cents per coin. As a result, when Dogecoin peaked at 73 cents, the value of his holdings reportedly surpassed $2 million.
Dogecoin Millionaire Believes Pepe Coin is on the Decline
According to the Dogecoin millionaire, there are several reasons why he sees Pepe Coin as a lost cause. One significant factor is the decrease in whale transactions that were previously occurring with regularity. In early May, during the height of the hype, there were around 2,720 transactions valued at $100,000 or more in a single day. However, the number of such transactions has now dwindled, hovering around just 100.
Additionally, Pepe Coin’s market cap, which reached a peak of $1.65 billion, has significantly decreased. Its aggregate worth is estimated to be between $500 million and $600 million. The market cap has remained stagnant for a period of two weeks, indicating a lack of upward momentum.
Furthermore, on-chain data reveals a decline in participant engagement with the Pepe Coin network. New addresses joining the network have dropped by 43.85% over the past week, while active addresses have shrunk by 16.66% during the same period. These statistics support the notion of a decreasing interest in Pepe Coin.
Moreover, the transfer volume of Pepe Coin has also dwindled to almost negligible levels. Previously, the on-chain transfer volume reached approximately 1,550 trillion PEPE tokens in mid-April. However, the curve has flattened out, and the current transfer volume reflects a mere value of 50 trillion PEPE tokens.
Taking all these factors into consideration, the Dogecoin millionaire believes that Pepe Coin is facing a downward trend and losing its appeal among investors.
Pepe Coin’s Journey Doesn’t Look Over Yet
Despite the current challenges faced by Pepe Coin, it is premature to declare its demise. The rise and fall of meme coins, such as Dogecoin and Shiba Inu, demonstrate the inherent volatility in this market. Interestingly, despite the less-than-ideal metrics, Pepe Coin still maintains its position as the third largest meme coin in the space.
Moreover, it is noteworthy that a majority of investors either have profits or are at break-even, with only a fifth of them experiencing losses. Additionally, addresses holding Pepe Coin balances have been gradually increasing. In early May, there were approximately 104.95k addresses with Pepe Coin portfolios, whereas that number has risen to 115.09k.
Therefore, labeling Pepe Coin as “dead” would be an unfair assessment. Some members of the community anticipate a potential surge in Pepe Coin’s value and are tempted to acquire more coins. Interestingly, individuals have even likened the Dogecoin millionaire’s investment decisions to those of Jim Cramer.
In his defense, the Dogecoin millionaire accurately identified the top of Pepe Coin when its market cap was around $1.5 billion and advised investors to sell. Since then, Pepe Coin has consistently experienced a decline in value.
It is important to recall that Contessoto previously stated that the ideal time to purchase Pepe Coin is when it is down 80-90% from its all-time high market cap of $1.5 billion. As Pepe Coin approaches that threshold amidst its downward trajectory, Contessoto has distanced himself from further involvement with the meme coin.