PEPE, a cryptocurrency based on the “pepe the frog” meme, has gained significant traction since its inception in April.
According to the Ethereum block explorer etherscan, PEPE has now reached a $502 million market cap with a 2,100% rise in value.
The token currently has approximately 75,000 holders, with several wallets holding over $5 million worth of the cryptocurrency.
Over the weekend, PEPE experienced a 350% surge in value, and derivatives exchange BitMEX has now announced that it will list perpetual swaps for the token, allowing traders to leverage up to 50 times their investment.
Investors King understands that despite the growing hype around the meme token, some early investors have been cashing out, resulting in price dips. One trader sold $2 million worth of the token and lost $350,000 due to the 25% slippage they experienced as a result of minimal liquidity.
Another trader temporarily tanked the price of PEPE by nearly 50% when they cashed out $678,000 worth of the token.
PEPE’s price action is reminiscent of the highly volatile dogecoin over the years. The token’s value has been influenced by the absence of liquidity and sustainable demand, which could lead to sell pressure when derivative markets go live.
Traders may attempt to capitalize on a trend that has historically ebbed and flowed, causing significant price fluctuations.
The meme-inspired token PEPE has seen an explosive growth rate since its issuance last month. While it remains to be seen how sustainable its current market cap is, the token’s volatility and unpredictable nature may continue to attract traders seeking high-risk, high-reward opportunities.