Pepe Coin (PEPE) has seen a huge decline in its price after large amounts of tokens were transferred to various exchanges. However, the coin still attracts many retail investors who hope for a recovery.
Pepe Coin, a cryptocurrency that features the popular Pepe the Frog meme as its logo, has experienced a severe price drop of more than 20% today.
The coin, launched in April 2021 as a joke, has been affected by a series of large token transfers that have shaken the market.
According to PeckShield, a blockchain security firm, the PEPE GnosisSafeProxy, an address that holds a huge amount of PEPE tokens, moved 16 trillion PEPE tokens (worth about $16.85 million) to several centralized exchanges (CEXs), such as Kucoin, Bybit, OKX, and Binance.
This transfer indicates a major change in the ownership distribution of the coin, as some of the original holders may be looking to cash out.
The PEPE GnosisSafeProxy received 26.7 trillion PEPE tokens (worth about $26.7 million) from the Pepe Deployer, the address that created and distributed the coin, four months ago.
However, the impact of this transaction only became evident today as the PEPE GnosisSafeProxy started to sell its tokens on the market.
More Tokens Flood the Market
The PEPE GnosisSafeProxy was not the only source of selling pressure for Pepe Coin today.
According to LookOnChain, a blockchain analytics platform, the Pepe multisig wallet, which works with Wintermute Trading, a crypto market maker, deposited 17.3 trillion PEPE tokens (worth about $18 million) on various exchanges.
This influx of tokens into the market has contributed to the price instability of the coin.
Moreover, an early PEPE buyer also decided to dump a large amount of tokens today. The buyer exchanged 1.88 trillion PEPE tokens for 1,010 ETH (worth about $1.68 million) on a decentralized exchange (DEX).
This individual action also affected the market performance of the coin.
As a result of these massive sell-offs, Pepe Coin’s price plummeted significantly today. The coin is trading at $0.000000875 at the time of writing, with a market capitalization of $343.06 million.
Pepe Coin Still Has Loyal Fans
Despite the price drop, Pepe Coin still has a loyal fan base that continues to support and buy the coin.
According to Etherscan, a blockchain explorer, Pepe Coin has nearly 140,000 holders, and this number is steadily growing.
This shows that many retail investors are still interested in the coin, even without major price increases.
As Pepe Coin’s value continues to dip, investors may have more opportunities to accumulate the coin at lower prices.
The current market conditions may encourage more dip buyers to enter the market, potentially stabilizing the coin’s value in the near future.
