- The PEPE token price declined by over 8% in the last 24 hours.
- Analysts predict the PEPE token holds risk.
The largest Pepe coin (PEPE) holder has more than $1 million worth of the token under their control. That indicated the “risks of concentration” looming over the near-term future of the popular memecoin.
Analysts have expressed concern over the actions of investors who purchased relatively large amounts of Pepe after its issuance on Ethereum, increasing the coin’s value from $1,200 to over $9 million in just a week.
New Meme Token Risk Alert
The hype surrounding the frog-themed token last week resulted in a market capitalization jump from a few thousand dollars to over $150 million, attracted a lot of liquidity from traders, and sparked the creation of numerous similar tokens on other blockchains.
The majority of degenerate Crypto Twitter traders appear to be switching their interest from leading meme tokens such as Shiba Inu (SHIB) and Dogecoin (DOGE) to Pepe the Frog branding. Also, cryptocurrency investors exchanged multi-trillions in just a few days. According to data from Etherscan, over 30 billion PEPE tokens were traded in just the last 12 hours.
However, the new memecoin hype may hold risks in the future due to the unusual activities and price actions. Further, the PEPE price dropped over 15% earlier in the morning. Despite this setback, bulls are recovering and are down by over 8% in a day. Currently, Pepe trades at $0.00000025 with a 24-hour trading volume of $40 million and a market cap of $104 million.
Moreover, the PEPE token has reached 50,000 holders. As a result of achieving this goal, PEPE held an airdrop for its devoted investors and drew new ones to the project every time, which raised the project’s visibility and liquidity in the market.