PEPE Whale Gains Nearly $5M in a Month

A major investor, often referred to as a “whale” in the cryptocurrency space, has achieved a substantial profit on the Pepe token, pocketing nearly $5 million within a month. The question now is whether Pepe’s price will continue to climb, spurred by increased retail interest.

In a remarkably profitable venture, this investor, specializing in high-risk memecoins, managed to earn $4.95 million in just one month. This represents a 52% return on their initial investment, even though the price of Pepe (PEPE) experienced a significant drop of over 17% from its peak value. The whale recently transferred all of their Pepe tokens into a Binance wallet, as noted by Lookonchain in a social media post on May 30. The post highlighted the rapid transaction, stating: “In the past 10 minutes, a whale deposited all 660.7 billion $PEPE ($9.52 million) bought a month ago into Binance, making ~$4.95 million, with an ROI of 52%.”

After completing this enormous transfer, the whale’s wallet, identified by the address “0x546,” now holds around $161,449 worth of cryptocurrency, predominantly in Compound (COMP) tokens, accounting for over 96% of the wallet’s value, according to Coinstats.

While certain investors have made significant gains, including the recent whale, overall interest in memecoins has seen a decline. The total trading volume of memecoins dropped by more than 21% in the past 24 hours, settling at $10.2 billion, compared to over $13 billion on May 28, according to CoinMarketCap. Despite their lack of inherent utility, the highly volatile nature of memecoins can result in considerable financial rewards. For instance, another savvy trader realized a $2.7 million profit in just three days by investing in the Donald Trump-themed MAGA (TRUMP) meme token at the end of May.

The price trajectory for Pepe is currently a matter of keen interest. Within a 24-hour period leading up to 1:45 p.m. UTC, the price of Pepe fell by over 4.4%, trading at $0.00001437, according to TradingView. The token remains down by more than 17% from its all-time high, which was reached on May 27. Analysts are cautious yet observant, noting that if historical patterns repeat, Pepe could experience a further price correction of up to 40% compared to its January 2024 activity.

There is also speculation that the ongoing market correction could be forming the basis for a new wave of enthusiasm. This potential hype cycle might see Pepe’s market cap soar beyond $10 billion. Pseudonymous crypto analyst Davie Satoshi postulated in a May 30 social media post that, “Typically, wave 4 tends to be a triangle pattern and corrects about 23-30%…This might be the pattern we are seeing until a major launch for wave 5 which should take us to $10 billion and higher!”

Despite the recent price drop, optimists believe that the correction could lead to another wave of buying interest, akin to past cycles. Historically, memecoins have demonstrated substantial boom-and-bust patterns, where periods of rapid price appreciation are followed by steep corrections. This cyclical behavior often attracts speculative interest, further increasing the volatility of such assets.

The integration of large transfers to platforms like Binance suggests strategic moves by these whales, possibly aiming to create liquidity or to capitalize on upcoming market movements. Tracking such transactions can provide insights into market sentiment and potential future price actions.

While the future price of Pepe is uncertain and dependent on numerous factors, including further retail interest and broader market conditions, the potential for significant gains remains attractive to both large and small investors. The next few weeks will likely offer more clarity on whether Pepe’s current market behavior is a precursor to another upward surge or a continuation of its downward trend.