Memecoins
Frog-Inspired Memecoin PEPE Considered “ETH Beta” Hits All-Time High
A whale has withdrawn approximately $13.6 million worth of PEPE from crypto exchange Binance since the fortunes of ETH ETF approval reversed.
Over the past 24 hours, the total crypto market cap has declined by 3.2%, while SHIB and DOGE have each fallen by around 5%.
(Shutterstock/Akif CUBUK)
Posted May 23, 2024 at 2:42 PM EST.
On the heels of increased expectations As an ETH ETF will be approved this week, PEPE, the frog-inspired memecoin with roots dating back to 4chan and Tumblr, has hit a record price, closing in on a market cap of $6 billion.
According to CoinGecko data, PEPE rose 3.2% in the last 24 hours and more than 40% in the last seven days to reach an all-time high of $0.00001454 before settling at 0. .0000$1385. Its market capitalization currently stands at $5.79 billion, which is approximately 9% of the total market capitalization of total memecoins.
Some traders view PEPE, which was first rolled out in April 2023, as beta for ETH, meaning the frog-inspired memecoin is not only correlated to ETH, but is also a leveraged play on ETH. For example, if ETH sees its price increase, PEPE will also see a jump, but the latter will see a much larger increase in its price movement.
Starting Wednesday, crypto analytics firm Lookonchain Underlines that a whalecrypto language for a wallet address containing large amounts of cryptocurrencies, withdrew from Binance around $5.4 million value of PEPE eight hours ago and almost $8.2 million of the PEPE on Wednesday.
Investors moving tokens off exchanges into their wallet addresses is often a sign of longer-term hodling, as tokens on exchanges are more accessible for sale.
Additionally, data from the blockchain intelligence platform Nansen shows that wallets labeled as “smart money” saw net inflows of approximately $444,000 in PEPE over the past 24 hours.
Nansen identifies a wallet address as “smart money”, if it has a history of on-chain profitability, which involves a variety of actions such as receiving a substantial amount of tokens over multiple airdrops or earning over $100,000 by being a liquidity provider on decentralized exchange Uniswap.
The fortunes of ETH, which traders recently complained lacked a narrative, reversed dramatically on Monday when Bloomberg analysts tripled their chances that a spot ether ETF would be approved by 25% to 75%. The price of ETH soared almost 20% that day alone. In the days that followed, a wave of ETH ETF applicants submitted updated files at the SEC. A decision is expected later Thursday.
Learn more: Bits + Bips: Is US politics behind the approval of the ETH ETF?
PEPE’s positive price action stands in stark contrast to the total crypto market cap as well as the two largest memecoins, SHIB and DOGE. Over the past 24 hours, the total crypto market cap has declined by 3.2%, while SHIB and DOGE have each fallen by around 5%.