The price of the new memecoin PEPE plummeted more than 42% just days after reaching an all-time high on May 6, causing at least one investor to suffer hundreds of thousands of paper losses.
A cryptocurrency “whale” purchased 962.3 billion PEPE using 70 Wrapped Bitcoin (WBTC) and 470 Ether, according to blockchain analytics service Lookonchain
Ethereum, the average price on May 5 was $0.000003122.
Since then, however, PEPE has fallen 42% from its all-time high, according to data from CoinGecko. It is estimated that the value of PEPE held by crypto investors is only $2.4 million, with unrealized losses of more than $600,000. Despite the recent price drop, PEPE still has a market cap of just over $1 billion, making it the 45th largest cryptocurrency by total valuation. PEPE has received widespread attention since it was launched on April 14. As of May 5, the transaction volume in the p ast 24 hours exceeded 636 million US dollars, and more than 5,000 ETH related gas fees were consumed through Uniswap transactions. While the price of memecoin has seen extreme volatility, the number of individual holders has increased steadily over the past three weeks. According to Dune Analytics , there are 144,534 individual token holders at press time.
The onset of memecoin mania also drove fees on the Bitcoin network to their highest levels in the past two years following a massive spike in Bitcoin activity involving BRC-20-related transactions.
Memecoin has played an important role in the cryptocurrency industry since the inception of the most widely recognized meme-based cryptocurrency, Dogecoin, back to 2013. It's worth pointing out that due to the lack of any fundamentals, investing in memecoins can be an extremely risky trading strategy, with massive fortunes made and lost in equal measure.
