The meme coin market, especially Dogecoin (DOGE), suffered significant losses throughout the week. The total value of this market has melted in half. The data, meanwhile, shows that a trending coin is attracting big investors.
Dogecoin (DOGE) took the worst hit after the launch of PEPE
Meme coin leader Dogecoin has experienced a massive drop in daily trading volume recently. A chart shared by Kaiko reveals that the daily trading volume of the meme coin market, which reached almost $1.5 billion from late March to early April, dropped below $0.5 billion earlier this month.
Also, Pepe Coin is drastically shrinking Dogecoin’s dominance. On the other hand, the Shiba Inu has maintained a relatively stable daily trading volume since February. However, in the last ten weeks, the daily trading volume has not exceeded 0.5 billion dollars.
#Meme tokens have lost traction this week as traders took profit and daily trading volume halved from more than $1 billion to about $500 million. pic.twitter.com/PLwbxHZodo
— Kaiko (@KaikoData) May 12, 2023
The meme coin market has been under the control of Pepe Coin since April. Although PEPE is still a new project, it has achieved a return of over 4,200% in a short time. Thus, it became the focus of attention of global investors. Still, some experts are expecting a serious drop, as we have covered in Cryptokoin.com analysis.
Whales are buying Pepe Coins even as the price drops
The sharp drop in the meme coin market has not deterred whales from buying PEPE. Whales are accumulating large amounts of PEPE despite the drop in prices, Lookonchain reports.
According to Lookonchain’s report, “After the price dropped, 3 whales started buying PEPE. The first whale pulled 1.4 trillion PEPE ($2.76 million) from Binance when the price was $0.000002054. The second whale bought 212 million PEPE (429,000) at $0.000001942 with 223 ETH (412k). The third whale bought 424 billion PEPE (864,000) at $0.000001957 with 450 ETH ($831,000).
3 whales started to buy $PEPE after the price dropped.
0x50C1 withdrew 1.4T $PEPE($2.76M) from #Binance when the price was $0.000002054.
0x2Baa bought 212B $PEPE($429K) with 223 $ETH($412K) at $0.000001942.
0x3AE8 bought 424B $PEPE($864K) with 450 $ETH($831K) at $0.000001957. pic.twitter.com/Y3wFOshkDI
— Lookonchain (@lookonchain) May 9, 2023
Since Binance listed Pepe on May 6, it has seen a massive increase in token trading volume on its platform. Data from CoinGecko shows that most of PEPE’s trading volumes come from Binance. During the week, PEPE reached over $430 million in volume on Binance. Despite the price drop, the number of PEPE owners has exceeded 100,000, according to DexTools.
PEPE signals correction
According to CoinMarketCap data, PEPE set the ATH price of $0.000004354 on May 5. Its daily volume reached $1.61 billion at this point. However, it is currently trading down 50% at this point.
The decline was reportedly exacerbated by profits being made by investors and those using advanced trading strategies. According to on-chain analytics firm Santiment, the increase in ETH deposits indicated that investors are likely profiting from their Pepe positions.
However, market experts question how sustainable PEPE will be in the future. The fact that few investors hold large amounts of the token as it is invested in the Ethereum network and few holders of control raise concerns for Pepe.
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