The internet’s resident amphibian is once again in the spotlight, but this time Pepe the Frog isn’t gracing troll forums – he’s making his way to the top of the cryptocurrency charts. PEPE, the meme coin named after the internet legend, is experiencing a historic surge thanks to a mix of nostalgia and retail investor enthusiasm.
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From reflux to bullfrogs: the rise of PEPE
PEPE’s recent rise is truly meteoric. Trading volume has surged 300% in the last 24 hours and prices have hit record highs. This dramatic rise coincided with a resurgence in Gamestop (GME) stock, leading many to believe that the army of retail investors in 2021 is back for round two, armed with meme coins.
The return of Keith Gill, better known online as “Roaring Kitty,” served as a rallying cry for these digital warriors. Gill’s surprise post on his dormant Reddit account sent shockwaves through the market, reigniting the nostalgic spark of the original Gamestop series. Analysts suggest that this nostalgia has spread to the cryptocurrency market, sparking a full-blown meme coin craze.
PEPE, which has already been on a steady rise since mid-April, has emerged as an unexpected champion of this digital meme zoo.
A whale is taking a dip in Pepe Pond.
It’s not just small investors driving the PEPE surge. Big money, or “whales” in cryptocurrency terms, are also jumping into the frenzy. According to on-chain data, one whale recently shelled out 1.86 million USDC for a whopping 195 billion PEPE tokens. Another whale bought $406 million of PEPE, driving prices higher.
This person spent $1.86 million $USDC 195B purchase $PEPE As of 12 hours ago, he has earned $236K in unrealized profits. https://t.co/TSngBKN2yC pic.twitter.com/Oszxx3nIO2
— Lookonchain (@lookonchain) May 14, 2024
But are they all golden memes and rainbows?
While PEPE’s current trajectory is a dream come true for early adopters, there is a cautionary tale lurking beneath the bubble. Meme coins are famous for being highly volatile. Their valuation is often based on hype and fleeting internet trends rather than solid financial fundamentals. This means that a sudden change in sentiment could cause a sharp price crash, causing investors to hold on to their Pepe bags.
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Moreover, PEPE is a relatively new player in the cryptocurrency game with an uncertain future. Unlike traditional cryptocurrencies, PEPE lacks a proven track record. Long-term viability is still a question mark.
Featured image by @GameStopPepe/X, chart by TradingView
Source: NewsBTC.com