As traders ditch PEPE, here’s how ETH stands to benefit – Crypto News – Crypto News
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As traders ditch PEPE, here's how ETH stands to benefit As traders ditch PEPE, here's how ETH stands to benefit

Cryptocurrency

As traders ditch PEPE, here’s how ETH stands to benefit – Crypto News

Published

1 year ago

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  • PEPE’s unimpressive price action led some holders to liquidate the memecoin.
  • Amount of ETH holders continues to grow.

In a move that could be tagged a “wise” one, a whale changed 1.73 trillion Pepe [PEPE]  for 742.6 Ethereum [ETH], Spot On Chain revealed. According to the on-chain tracking platform, the said whale bought the PEPE tokens at $0.00000054 between April and May 2023.

But when the memecoin was exchanged for ETH, PEPE’s price was $0.0000010. This implied that the whale gained 85.7% profit, valued at $802,5000 from holding the token.

PEPE liquidity has been rotated

AMBCrypto observed that the decision to let go of PEPE could be connected to its price action. As you probably know, PEPE  had its breakout season last year. Within two weeks of its launch, the price had increased by almost 2700%. However, things have not been in the memecoin’s favor of late.

On a Year-To-Date (YTD) basis, PEPE’s value has decreased by 30.74%. Also, the last 30 days have been underwhelming for the cryptocurrency. This suggests that the token might have lost its Midas touch which attracted participants to it in its early days.

However, ETH’s price action was different. At press time, the altcoin’s price was $2,331, representing a 4.55% increase in the last seven days. It is important to also mention that while the broader market fell in the last 24 hours, ETH showed strength.

Conditions like this suggest that ETH could be at the forefront of market recovery soon. AMBCrypto looked at PEPE’s social volume using on-chain data from Santiment.

As of this writing, the social volume had significantly reduced compared to what it was in 2023. This decrease implies that PEPE was no longer a token with enough mentions around social media channels and among traders.

Chart showing PEPE's social volume and ETH's social volume

Source: Santiment

ETH is on the radar of many

But the chart above showed that ETH’s social volume has been jumping. This proves that market participants were monitoring the movement of the altcoin. It could also mean that ETH was one cryptocurrency that traders believed to have long-term potential.

Another metric which showed that belief in PEPE was waning while ETH was improving was the holder count. Interestingly, we considered the 90-day timeframe to assess the sentiment.

According to Santiment, the total amount of ETH holders increased from 108 million to 113.57 million within the last three months. PEPE also experienced growth in this aspect. However, the count which was 157,000 on the 21st of January has dropped to 155,000 at press time.

The number of ETH holders against the number of PEPE holders

The number of ETH holders against the number of PEPE holders

Source: Santiment

Realistic or not, here’s PEPE’s market cap in ETH terms

In the current state, it seems that more players are liquidating their PEPE holdings. Should this continue, the price of the memecoin could nosedive.

In ETH’s case, an increase in accumulation could drive the value higher. But time will tell if these will become reality.

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