The price of PEPE coin had a substantial decline on Saturday, eliminating a portion of its previous gains. The price plummeted to $0.00001088, indicating a significant decrease of 7.5% during a 24-hour period.
This decrease is a component of a more extensive collapse in the market, but the involvement of large investors, known as whales, has exacerbated the situation.
An entity with a significant amount of PEPE tokens, commonly referred to as a whale, executed a substantial sale of these tokens in exchange for Ethereum (ETH), hence intensifying the downward pressure on the market.
According to on-chain statistics, a prominent individual with the identifier “0x837” exchanged more than 1.4 trillion PEPE tokens for ETH, which has a value above $18 million.
This action is an indication of a downward trend for PEPE. The acquired ETH was deposited as collateral in the Compound protocol, demonstrating a strategic approach with a long-term perspective.
In addition, the whale transferred 300 billion PEPE tokens, which are worth around $3.85 million, to Binance, resulting in a loss of $1.73 million. This occurrence was not an isolated event; the whale had already deposited 1.1 trillion PEPE, which had a value of $14.42 million, and most likely converted it to ETH.
The whale transferred a total of 1.4 trillion PEPE tokens to Binance within a span of two days. The whale with the identifier “0x837” recently made a withdrawal of 1,728 ETH from Binance, which is equivalent to a value of $5.86 million. As a result, their overall ETH holdings now amount to 4,374 ETH, with a total value of $14.91 million.
The whale’s decision to convert PEPE to ETH, while incurring losses, demonstrates a calculated investment strategy. The market’s trust in Ethereum is demonstrated by this surge, which is primarily influenced by the anticipated introduction of Spot Ethereum ETFs in July.
Several participants in the market are making analogies between the introduction of Spot Bitcoin ETFs and suggesting that Ethereum could experience a comparable surge.
Nonetheless, Bryan Armour, a Morningstar ETF analyst, opines that the introduction of Spot Ethereum ETFs may not elicit as much enthusiasm as Bitcoin, owing to the contrasting market sizes of the two crypto.
The price difficulties experienced by PEPE can be attributed to larger market trends and substantial whale activity. The significant conversion of a substantial quantity of PEPE to ETH, despite incurring losses, suggests a deliberate change in strategy towards Ethereum.
The anticipated debut of Spot Ethereum ETFs is driving this trend. Analysts maintain caution on the possibility of Ethereum experiencing a spike comparable to Bitcoin’s ETF launch, citing market disparities. The upcoming weeks will be crucial in defining the trajectories of both PEPE and Ethereum.
