- Pepe’s trading volume surged threefold from the start of May, reaching $2.47 billion despite a 12% price decline from its recent all-time high on May 27.
- This increase in trading activity has impacted other meme coins, with Dogecoin and Shiba Inu also experiencing price drops, while some traders remain cautious about Pepe’s future performance.
The trading volume of the meme coin Pepe has seen a dramatic increase, tripling from the start of May. This surge comes just after the coin experienced a sharp 12% decline from its recent all-time high (ATH) on May 27.
Pepe’s Meteoric Rise and Fall
On May 5, Pepe was priced at $0.000008834, with a trading volume of $783.17 million. The coin saw a remarkable price gain of 94%, reaching new heights on May 27. However, its value has since slipped to $0.0000147. Despite this drop, Pepe’s trading volume in the past 24 hours skyrocketed to $2.47 billion, marking a 216% increase from the beginning of the month.
This significant increase in trading volume has sparked various reactions among crypto traders. Some believe Pepe is influencing the entire meme coin market, while others remain cautious due to its recent price decline. Pseudonymous crypto trader Nebraskangooner shared his views on May 30, stating, “Pepe is pulling back so the rest of the meme coin market is too. Pepe is the meme leader right now.” This sentiment suggests that Pepe’s movements are seen as a barometer for other meme coins.
The Ripple Effect on Meme Coins
The impact of Pepe’s price drop has been felt across other major meme coins. Dogecoin and Shiba Inu, the two largest meme coins by market capitalization, also experienced declines within the same three-day period. Dogecoin’s price fell by 6.41% to $0.1604, while Shiba Inu decreased by 8% to $0.00002608, according to data from CoinMarketCap.
Despite the downturn, some traders like Michael Pizzino view Pepe’s ATH as a potential warning sign. Pizzino stated in a May 30 X post, “Pepe is technically in the strongest position in terms of price, BUT… If the next rally fails to print a new high, look out.” This cautionary note highlights the volatility and uncertainty surrounding meme coins.
Interestingly, while Pepe’s price decline has garnered increased trader interest, leading to a 26.38% rise in trading volume over the past 24 hours, Dogecoin and Shiba Inu have seen their trading volumes drop by 7.4% and 45% respectively. Since its launch in May 2023, Pepe has experienced extraordinary price growth, soaring by 25,955%. This year alone, the coin has surged by 1,042% since January 1.
However, Pepe’s journey has not been without periods of significant volatility. Traders have often capitalized on these fluctuations, with notable instances like the recent profit made by a Pepe whale holder. On May 30, Cointelegraph reported that this holder capitalized on the latest spike, earning nearly $5 million in profit within a month.
As Pepe continues to navigate the turbulent waters of the crypto market, its influence on other meme coins and its future performance remain key points of interest for traders and investors alike.
