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Pepecoin (PEPE) tokens were launched in mid-April and quickly gained popularity among investors, reaching a market capitalization of $1.8 billion in just three weeks. However, the path of the meme coin went down as the token fell almost 45% from its peak on Friday, which caused a wave of anxiety among investors.
Some speculate that the sudden drop in prices was due to traders profiting from their positions, while others point to the introduction of futures tracked by Pepe as a possible reason.
In any case, the once-promising journey of the Pepe token has come to a standstill, leaving investors wondering if this amphibian-inspired cryptocurrency can regain ground and be back in the spotlight.
The price of the PEPE token has decreased after a short-term rally
At the time of writing, the price of the PEPEUSD token on CoinGecko is just $0.00000233, down 10.6% in the last 24 hours. This is disappointing for investors, who witnessed a remarkable seven-day rally during which the price of the token rose by a staggering 221.0%.
The sudden drop in the value of PEPEUSD is a reminder of the volatility that characterizes the world of cryptocurrencies. Despite last week’s promising rally, the token’s current price suggests caution is still warranted for those considering investing in this meme-inspired digital currency.
The total market capitalization of the cryptocurrency has weakened to $1.12 trillion. Chart: TradingView.com
After an unprecedented surge in value that saw PEPEUSD rise by almost 5,000,000% in just a few weeks, altcoin holders can capitalize on their profits by selling their positions. This is reflected in the significant decline in the value of the token, which previously peaked at $0.00000431.
Pepecoin quickly took the crypto market by storm, and in just three weeks since its release in mid-April, its market capitalization reached $1.8 billion. However, the sudden drop in value indicates that the token’s meteoric rise may have been too good to continue, and investors may be repricing their positions accordingly.
PEPEUSD Profits Converted To Ether As Deposits Hit New High
Following the surge in the value of Pepecoin, investors are reportedly profiting by converting their holdings into Ether (ETH), which recently hit a record level of deposits on exchanges since November 2021, when it peaked at $4,500.
🚀 Updating our report on #Ethereum‘s sky-high active deposits, exchange addresses interacting on the network is now at its highest level since November, 2021. As expected, $ETH is showing decoupling signs and on the cusp of breaking $2k once again. https://t.co/zYjY7669yj https://t.co/dQlKsTVyt2 pic.twitter.com/2nMXOUGgYC
— Santiment (@santimentfeed) May 5, 2023
On Monday, network analytics firm Santiment speculated on Twitter that the surge in Ether deposits could be the result of traders cashing out their Pepe positions.
Pepecoin’s rally has seen some investors turn small investments into significant profits in just a few days of the coin’s release.
However, due to the recent drop in the value of the token and the high volatility of cryptocurrencies in general, investors should exercise caution and do thorough research before investing in any digital currency.
(The contents of this site should not be considered investment advice. Investing involves risk. When you invest, your capital is at risk.)
-Selected image from the Alabama Cooperative Extension System.