The crypto market has been experiencing its share of meme coin mania in recent weeks, with tokens like Pepecoin (PEPE) skyrocketing in popularity. However, data from crypto intelligence firm Nansen suggests that the fervor may be starting to wane, as top-performing traders have been reducing their PEPE holdings.
According to Nansen, “smart money” wallets — crypto accounts of individual traders or institutions known for making profitable moves — have decreased their PEPE stash by $3 million in the past 24 hours. In fact, the total amount of PEPE held by smart money has nearly halved since late April. This trend indicates that the hype surrounding the meme coin may be slowing down.
PEPE, a token based on the “Pepe the frog” meme, gained immense traction since its inception about a month ago. The token achieved a staggering $1.8 billion market capitalization last Friday, and some early investors walked away with millions in profit. However, PEPE’s price has taken a 66% hit since its all-time high on May 5th, reducing its market cap to below $600 million.
Interestingly, blockchain data revealed that three large PEPE investors were purchasing the token in bulk during the price dip, which led some to hope that a price bump could be imminent. Despite this, the number of tokens held by smart money wallets continues to dwindle, showing no indication that these savvy traders anticipate a bounce. The smart money balance for PEPE currently stands at 6.9 trillion, a significant drop from the 13.5 trillion seen at the end of April.
One notable example of an early investor backing away from PEPE is the pseudonymous crypto trader “vxv.eth.” According to Nansen data, this trader accumulated 1.3 trillion tokens since their initial purchase on April 17th. However, on Thursday, the trader transferred their entire PEPE stash, worth $2.1 million, to the Gemini and UniSwap crypto exchanges, effectively exiting their position.
The findings from Nansen’s data may signal that market sentiment for PEPE is slowly shifting away from the extreme enthusiasm of its initial surge. Although the meme coin gained huge attention and backing from investors, the recent sell-offs by top-performing traders imply that certain individuals see diminishing potential for profit.
As the situation continues to unfold, it’s important for investors to take note of these indicators and exercise caution, ensuring they remain informed and make wise decisions when navigating the volatile landscape of meme coins and other cryptocurrencies.
Source: Coindesk
