Highlights:
- A PEPE whale dumped 330 Billion tokens, drawing community interest.
- Whale retains 1 trillion PEPE tokens after recent significant transactions.
- PEPE’s NVT ratio hit an all-time high, signaling potential overvaluation amid mixed market reactions.
Pepe (PEPE), the third-largest meme coin, is attracting significant attention from traders and investors due to recent whale dumps. On August 30, a whale dumped 330 billion PEPE tokens, worth $2.53 million, to the California-based crypto exchange Kraken, according to Lookonchain. This was executed in two transactions: the first transfer involved 180 billion tokens, and the second moved 150 billion PEPE coins.
Notably, the whale still holds 1 trillion PEPE tokens, valued at $7.57 million, in their wallet following the significant sale. Additionally, the whale has conducted a series of PEPE transactions in the past that have also attracted the attention of observers.
A whale deposited 330B $PEPE($2.53M) to #Kraken at a loss 1 hour ago, and still has 1T $PEPE($7.57M) left.
The whale lost a total of ~$3.13M on $PEPE!https://t.co/akwClljHZW pic.twitter.com/CvZgb2XVzq
— Lookonchain (@lookonchain) August 30, 2024
On August 18, two wallets associated with the same whale were involved in significant PEPE coin transactions. According to the report, the first transaction involved selling approximately 500 billion PEPE at an average price of $0.000008, followed by the purchase of 828.64 billion PEPE at a slightly lower price of $0.0000074. However, shortly after, the whale withdrew the 828 billion PEPE tokens, valued at $6.18 million, from the exchange. This brought their total holdings to 1.3 trillion PEPE, worth $9.9 million. Amid these recent asset movements, the whale saw losses of about $3.3 million.
Crypto whale activities continue to sway market movements due to their large holdings. Consequently, the wider community closely monitors their transfers, impacting the ecosystem. Likewise, sudden transfers to major centralized exchanges such as Kraken, Binance, and Coinbase often trigger broader sell-offs.
On August 29, an institutional crypto wallet linked to Ceffu, Binance’s custody service, invested $1 million in Pepe coin. Lookonchain data reveals that the wallet withdrew 1.48 trillion PEPE tokens, worth approximately $11.6 million, from Binance. The transaction records show that the PEPE coins were transferred in two batches: 1 trillion and 481.84 billion tokens.
A wallet related to #Ceffu withdrew 1.48T $PEPE($11.6M) from #Binance just now.https://t.co/H9anq20RUY pic.twitter.com/TTq3BVtVoo
— Lookonchain (@lookonchain) August 29, 2024
Crypto Whale’s Sale Sparks PEPE Price Drop
Crypto users have pointed to falling crypto prices as a major reason for the sale. However, the whale still retains a substantial amount of PEPE coins. The actions of leading assets influence meme tokens, as their prices often fluctuate based on market sentiment and on-chain data.
According to data from CoinMarketCap, PEPE experienced a decline of 1.43% at the time of writing, trading at $0.000007649. Additionally, its trading volume over the past 24 hours fell significantly by 11.49%, totaling $491.4 million.
Crypto assets remain under pressure as Bitcoin and other leading coins experience declines over the past 24 hours. The price of Bitcoin, the top asset by market cap, dipped below the $59k mark before showing a slight recovery. Similarly, Ethereum and Solana saw price drops during this period.
On-Chain Indicators Shows Mix Sentiment
While accumulation by large holders typically signals bullish sentiment, other indicators paint a different picture. Pepe Coin’s Network Value to Transactions (NVT) ratio has recently reached an all-time high amid this period of price consolidation. A high NVT ratio often means a cryptocurrency’s market cap is too high compared to its transaction volume, suggesting it might be overvalued.
This can lead to less buying pressure, with some seeing PEPE as a bubble. On August 30, the Network Realized Profit/Loss metric also spiked, indicating that many investors are taking profits. This could be due to concerns about PEPE’s valuation or expecting a price drop. While some are selling, others are still holding or buying more.