Pepe (PEPE), a newly launched memecoin, has experienced a sharp decline in its price, dropping over 42% in just a few days after reaching its record high on May 6th. This drastic fall in value has resulted in significant paper losses for some investors, with one investor reportedly facing losses in the hundreds of thousands.
Lookonchain, a blockchain analytics service, has reported that a single large investor, commonly known as a “whale,” bought 962.3 billion Pepe tokens on May 5th. The purchase was made using 70 Wrapped Bitcoin (WBTC) and 470 Ether (ETH) at an average price of $0.000003122.
Related article: Holders Now Swapping Shiba Inu for Pepe Coin. Is This The Right Thing to Do?
According to CoinGecko, the value of PEPE has dropped by 42% since its peak, resulting in a decrease in value for the aforementioned crypto investor. Their PEPE holdings’ estimated value is $2.4 million, representing an unrealized loss of over $600,000.
Pepe’s market capitalization remains above $880m, despite the recent drop in its price. This puts it in the 45th position among all cryptocurrencies in terms of total value.
PEPE’s Market Capitalization. Source: coinmarketcap
Pepe has gained significant attention since its creation on April 14, with a trading volume of over $636 million in the last 24 hours. As of May 5, it has also burned more than 5,000 ETH in gas fees through Uniswap trading alone.
Although Pepe’s value has fluctuated significantly, the number of individual holders has steadily increased for the past three weeks. Based on data from Dune Analytics, as of now, there are 144,534 unique holders of the token.
Memecoins have been a part of the cryptocurrency market since Dogecoin (DOGE), the most well-known meme-based cryptocurrency, was launched in 2013.
However, it’s important to note that investing in memecoins can be a highly risky trading strategy due to their lack of underlying fundamentals. Huge amounts of wealth have been both gained and lost as a result.