Pepe [PEPE]: As market cap reaches $1 billion, where will the memecoin head next

PEPE’s market capitalization crossed $1 billion following its listing on Binance’s Innovation Zone.
PEPE has set a new all-time high in its trading volume and network activity.

Fuelled by its addition to Binance’s Innovation Zone on 5 May, the market capitalization of popular meme coin Pepe [PEPE] crossed the $1 billion mark, as the alt’s value jumped by almost 50% in the last 24 hours.

According to Coingecko, the token has surged by an astonishing 1,000% in the last week, propelling it to become the 42nd-largest cryptocurrency in terms of market capitalization at press time. As a result, it has surpassed the market capitalization of both Fantom [FTM] and Aave [AAVE].

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As the general utility of meme coins remains highly doubted, leading exchange Binance, in its announcement, warned:

“Memecoins are extremely high risk; please ensure that you exercise sufficient risk management. Please note that, as of the time of writing, PEPE has no token utility or value support mechanism.”

PEPE croaks loudly on-chain

As of this writing, the meme coin exchanged hands at $0.00000309, with a 291% jump in trading volume within the last 24 hours. Increased trading following PEPE’s addition to Binance’s Innovation Zone pushed its daily trading volume to an all-time high of $2.76 billion, per data from Santiment.

Source: Santiment

In addition to a jump in its trading volume, the token’s network activity also registered a new milestone in the wake of its listing on Binance. During the intraday trading hours on 5 May, the count of unique daily addresses that traded the alt rallied by 119%.

As investors rushed to capitalize on the price surge of meme-inspired cryptocurrency PEPE, the token’s network experienced a surge in demand, with many new users flocking in to trade the alt.

According to data from Santiment, the count of new addresses created to trade PEPE rallied by an impressive 169% on 5 May.

Source: Santiment

Further, since the memecoin’s launch on 17 April, the whales have actively traded the token. For example, the count of whale addresses that hold between 10,000 and 10,000,000 PEPE tokens has since risen by over 23,000% in under 30 days.

While there have been a few price dips, this cohort of PEPE investors remains undeterred as they continue accumulating the meme coin.

Source: Santiment

According to on-chain data analyst Lookonchain, following Binance’s listing, a whale purchased 313 billion PEPE tokens for 1.24 million USDT and exchanged 120 million WOJAK for 27.83 billion PEPE.

A whale bought 313B $PEPE at a price of $0.000003973 with 1.24M $USDT and exchanged 120M $WOJAK for 27.83B $PEPE($117K) after #Binance announced the listing of $PEPE.

The whale also exchanged 100M $WOJAK for 77.5M $TURBO($117K).https://t.co/7CQUUJ4Vvj pic.twitter.com/bOjEtd8XoI

— Lookonchain (@lookonchain) May 5, 2023

Read Pepe’s [PEPE] Price Prediction 2023-2024

Look before you “hop” in

PEPE’s key momentum indicators were positioned in significantly overbought spots at press time. Its Relative Strength Index (RSI) rested at 78.26, while its Money Flow Index (MFI) was pegged at a high of 88.15.

While these represented increased accumulation momentum at press time, these highs are typically followed by a price correction, as exhaustion sets in when the buyers in the market cannot sustain any further price growth.