Pepe Coin entered the cryptocurrency market just a month ago, instantly capturing the interest of traders as a favored coin for fast profits. Simultaneously, investors began redirecting their funds towards this meme-inspired coin with hopes of earning significant returns. However, the initial excitement surrounding this memecoin has gradually diminished. Glauber Contessoto, a millionaire known for his success with Dogecoin, recently expressed on Twitter that Pepe Coin has met its demise, declaring it officially dead.
The Dogecoin millionaire has multiple reasons to believe that this memecoin has no future. One significant factor is the decline in whale transactions, which were previously occurring frequently. During the height of the hype in early May, there were approximately 2,720 transactions valued at $100,000 or more taking place in a single day. However, currently, the number of such transactions has significantly decreased to around 100. This decline indicates a loss of interest and activity in Pepe Coin.
Following its peak market capitalization of $1.65 billion, Pepe Coin has experienced a significant decrease in value, now ranging between $500 million and $600 million. Furthermore, as depicted below, the market capitalization of Pepe Coin has remained stagnant for the past two weeks. This lack of growth indicates a lack of investor confidence and diminishing market interest in the coin.
Regarding on-chain data, there was an initial influx of participants joining their network at the beginning of the month. However, the situation has now reversed, with participants leaving the network. According to data from ITB, new addresses have decreased by 43.85% over the past week, while active addresses have reduced by 16.66% during the same period. These statistics support the notion that interest and engagement in Pepe Coin are waning.
Simultaneously, the transfer volume of this memecoin has significantly declined to nearly negligible levels. In mid-April, the on-chain transfer volume displayed a figure of approximately 1550 trillion PEPE. However, the curve has flattened considerably since then. At present, it reflects a mere value of 50 trillion PEPE, as illustrated below. This decline in transfer volume further emphasizes the diminishing activity and value associated with Pepe Coin.
PEPE Coin on the Brink: Will It Survive or Fade Away?
However, it appears that the journey is not over for Pepe Coin just yet. Meme coins often experience sharp declines following their meteoric rises, and we have witnessed similar patterns with coins like Dogecoin and Shiba Inu. Despite the underwhelming state of many metrics, it is worth mentioning that this memecoin remains the third largest meme coin in the market. Additionally, it is noteworthy that a significant portion of investors are either in a profitable position or have broken even, while only one-fifth of them are currently experiencing losses.
This suggests that there is still some resilience and potential for Pepe Coin to recover and regain its momentum. Simultaneously, addresses holding a balance of Pepe Coin have not begun selling off their holdings. Instead, their numbers have been steadily increasing. In the beginning of May, there were approximately 104,950 addresses with their portfolios. However, that number has now risen to 115,090 addresses, indicating a growing interest and commitment among holders to retain their Pepe Coin investments.
Therefore, it may not be entirely accurate to declare Pepe Coin as completely dead. Some members within the community still hold expectations that Pepe Coin could experience a significant surge from its current state, which tempts them to acquire more coins. Interestingly, there have been direct comparisons made to “Jim Cramer levels of investing” by individuals who disagree with Glauber Contessoto’s assessment.
In his defense, the Dogecoin millionaire highlighted his accurate identification of the top for Pepe Coin when its market capitalization was around 1.5 billion. He advised investors to sell at that point. Subsequently, Pepe Coin has consistently experienced downward trends, with its value declining day after day. Contessoto’s claim of predicting the peak serves as a justification for his stance on the coin’s decline.
It is important to remember that Glauber Contessoto previously mentioned that the optimal time to purchase Pepe Coin is when it has experienced an 80-90% decline from its all-time high market capitalization of 1.5 billion. With the recent downturn and Pepe Coin approaching that threshold, Contessoto has distanced himself from Pepe Coin, indicating that he is no longer involved or supportive of it.