Despite the drop in PEPE's value and market cap, some crypto whales are not giving up on this memecoin.
Pepe (PEPE), a newcomer in the memecoin arena, experienced a severe plunge in its market capitalization.
Pepe's financial journey over the past five days has been nothing short of a roller coaster ride. The token's value saw a sharp 62% decline, freefalling from a crest of $0.00000431 to a trough of $0.00000163, as per BitDegree data.
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This dramatic slide in Pepe's value led to a major shake-up in its total market valuation. In just a matter of days, it dropped from a staggering peak of $1.82 billion on May 6th to almost $640 million at the present moment.
A study released on May 8th by a prominent crypto fintech firm Matrixport sheds some light on this trend. The report pinpointed the cause of Pepe's price drop to large-scale traders unloading their tokens onto fresh retail investors in the wake of Pepe's Binance debut.
Interestingly, the report also highlighted that Pepe's explosive growth since its inception on April 14th appears to be fueled by traders operating from Asia. Matrixport's data revealed that the buying activity during Asian trading hours added an astronomical 3,657% to the memecoin's overall 9,071% surge as of May 8th.
Further corroborating this theory, a crypto market intelligence agency Santiment claims that this massive influx was primarily due to early PEPE investors swapping the memecoin to Ether (ETH).
Despite Pepe's rather rocky ride over the past week, some infamous crypto whales are still snapping up Pepe at these discounted prices.
Blockchain analytics firm Lookonchain provided insight into this, revealing that "Machi Big Brother," an alias for former tech entrepreneur Jeffrey Huang, has scooped up 73.4 ETH worth of Pepe (around $137,000) in the last four days.
Unlike its meme coin counterparts, Dogecoin (DOGE) and Shiba Inu (SHIB), who have capitalized on their popularity to expand their functionalities and token uses, PEPE seems to be testing the waters of intrinsic value provision.