Pepecoin (PEPE) holders appear to be taking profit after the most spectacular rally in altcoin history, up nearly 5 million percent in the past few weeks.
Pepecoin is down nearly 45% after hitting a record high of $0.00000431 on May 5. The market capitalization reached 1.8 billion dollars (approximately 240 billion yen, converted to 135 yen to the dollar) in just over 3 weeks from the issuance in mid-April.
The price decline appears to have been spurred by traders taking profits or the introduction of multiple Pepecoin futures last week, with traders using sophisticated trading strategies.
Traders appear to be taking profits by converting Pepecoin to Ethereum (ETH). Ethereum inflows into exchanges hit a record high. The previous record was in November 2021, when Ethereum hit a then all-time high of $4,500.
According to on-chain analytics firm Santiment, “Exchange addresses trading on the network have hit the highest level since November 2021. As expected, Ethereum shows signs of decoupling and signs of breaking above $2,000 once again. I am,” he tweeted.
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
Some traders invested hundreds of dollars in Pepecoin immediately after its launch and made huge profits in just a few weeks.
As we have already reported, trader dimethyltryptamine.eth just three weeks ago bought trillions of PEPE for $263 and sold some for $3.8 million. 10,000 yen) or more. He still has more than $5 million worth of Pepecoin as of May 8.
But this kind of dizzying luck is not the norm. Analysts have repeatedly expressed concerns about the behavior of investors who bought large amounts of Pepecoin after its launch on the Ethereum blockchain. This means that in the short term, a large amount of PePeCoin is held by a small number of holders, who may capture most of the profits.
｜Translation: coindesk JAPAN
｜Editing: Takayuki Masuda
｜Image: Pepecoin with a frog motif (from Pepecoin’s Twitter)
｜Original: Pepecoin Drops Nearly 50% From Highs as Traders Likely Taking Profits for Ether
The post Pepecoin drops nearly 50% from its highest price ── Holders take profits | coindesk JAPAN | Coindesk Japan appeared first on Our Bitcoin News.