The price of PEPE coin has experienced a significant decline, plummeting over 60% since reaching its peak on May 5. This substantial downturn has dealt a heavy blow to optimistic investors who were aiming to capitalize on their impressive triple-digit profits from June.
The latest insights from on-chain data suggest massive whale movement. In light of these developments, a pressing question arises:
What lies ahead for the PEPE price, and what can be expected in the future?
Trader Accumulates PEPE: A Long-Term Investment?
Amidst the crypto community’s ongoing speculation, Lookonchain recently unveiled a noteworthy transaction involving trader “osf_rekt.”
It appeared as though osf_rekt was making a conscious effort to maintain ownership of the assets as the user traded 141 Ethereum (ETH) for a staggering 173 billion units of the popular meme coin, PEPE.
We noticed that @osf_rekt spent 141 $ETH ($265K) to buy 173B $PEPE again 16 hrs ago and transferred 690B $PEPE($1.05M) to a safe multisig wallet.
He spent a total of 536 $ETH ($1.04M) to buy 613B $PEPE from June 14 to July 11, with an average buying price of $0.00000169. pic.twitter.com/jDzdf0JVvu
— Lookonchain (@lookonchain) July 12, 2023
What makes this transaction even more intriguing is that it was not the first instance of osf_rekt acquiring PEPE. This pattern of behavior by the trader using a pseudonym implies, in most cases, that they have a fundamental view that the cryptocurrency has positive prospects.
Considering the widespread buzz surrounding PEPE, this accumulation of tokens by osf_rekt does not come as a surprise. However, it is worth noting that PEPE has experienced a recent decline in value.
Over the past seven days alone, its value has depreciated by 14.7%, with a 24-hour slump of 2.8%, ultimately placing its current price at $0.00000150, as reported by CoinGecko.
Source: Coingecko
Declining User Adoption And Network Growth
In addition, a PEPE price report notes that the meme coin has witnessed a concerning trend of dwindling user adoption. This is evident from the data provided by Santiment, which highlights a substantial decrease in the number of new users joining the PEPE network over the course of one week.
Source: Santiment
Specifically, on July 3, the chart indicates that 1,635 fresh wallet addresses were created. However, as of the time of writing, this number has plummeted by a staggering 47%, leaving only 863 new addresses being generated.
Total market cap of cryptocurrencies at $1.15 trillion. Chart: TradingView.com
The decline in new user sign-ups is not the only cause for worry within the PEPE ecosystem. Another key metric, network growth, has also experienced a disappointing downturn.
These figures raise concerns about the overall health and vitality of the PEPE ecosystem. The decline in new user adoption and network growth may indicate a potential loss of interest or a lack of confidence in the project.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
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