Pepe token (PEPE), has surpassed the trading volumes of two of the biggest memecoins in the market, Dogecoin (DOGE) and Shiba Inu (SHIB). With a trading volume of over $250 million in the past 24 hours, Pepe has taken the market by storm.
The rally for Pepe started over the weekend, with a 100% price spike, only to reverse on Tuesday night. However, the trading volumes have remained high, with the bulk of the volumes generated by automated bots. These bots continually buy and sell tokens to generate trading activity and provide liquidity to investors, resulting in profits for themselves.
The trading activity on Pepe is not as liquid as that of Dogecoin or Shiba Inu, which has resulted in a small trade of over $100,000 causing a 2% dip in Pepe prices on OKX. In comparison, the same dip would take a trade of $800,000 for Dogecoin on OKX, owing to its higher market capitalization and overall liquidity.
Early buyers of Pepe are taking profits, as one trader took a 40% slippage haircut to exit a Pepe position on Uniswap in one go. An analysis of the wallet address showed the trader had turned an ether (ETH) – valued at $1,800 at the time – to over $3 million worth of Pepe in just over two weeks.
DEXTools data shows that sellers are routinely selling from one ether to over 7 ether worth of tokens as of Wednesday morning, contributing to selling pressure. However, buying activity remains strong, with 6,500 buys compared to 3,300 sells in the past 24 hours.
Analysts have previously raised concerns about the behavior of investors who bought relatively large amounts of Pepe after its issuance on the Ethereum blockchain. These investors turned about $1,200 of initial capital into over $9 million in just a few days, as reported by CoinDesk.
Despite the surge in trading volumes, Pepe is down 10% over the past 24 hours. As with any memecoin, the market is highly volatile, and investors must tread cautiously. The frenzied trading activity may result in significant profits, but it could also lead to significant losses.
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