Oct 25, 2023 Frank Stewskid
Why Did the Pepe Memecoin Surge Over 30% Recently?
The Pepe memecoin ($PEPE) experienced an extraordinary rise of over 30% within a 24-hour period, significantly contrasting the prevailing bitcoin (BTC) dominance. The primary driver behind this sharp uptick? A strategic burn of 6.9 trillion tokens, equivalent to $5.5 million.
This burning strategy has resulted in the frog-themed memecoin trading at a two-month peak. It has effectively alleviated concerns regarding the team's token holdings. Currently, the team possesses 3.79 trillion tokens, valued at about $3.72 million. This amount would have a marginal impact on the open market, especially when considering the 24-hour trading volume has skyrocketed to $397 million, as reported by CoinMarketCap.
Furthermore, a post from the Pepe memecoin team on X (previously known as Twitter) account revealed the induction of a new advisory team to steer Pepe into the future. This team is evaluating the potential use of the remaining 3.79T tokens associated with the original team's CEX multi-sig wallet, with emphasis on strategic partnerships and marketing prospects.
6.9T $PEPE Tokens worth ~$6,000,000 have been burned. https://t.co/aN5LRUFz8u
— Pepe (@pepecoineth) October 24, 2023
A new team of advisors have been brought on to guide Pepe forward. Uses for the remaining 3.79T tokens attributed to the original team CEX multi-sig wallet for strategic partnerships and marketing… pic.twitter.com/JN3ssvH0XL
What Sparked the Decision to Burn $PEPE Tokens?
The backdrop to this significant token burn is riddled with controversy and unexpected events. In August, a number of rogue developers associated with $PEPE allegedly made a series of unauthorized transactions from the project's multisignature wallet. This resulted in a substantial amount of tokens being pilfered, causing upheaval within the community.
The massive PEPE memecoin burning in October accounts for 1.6% of the memecoin's entire supply. The decision was both a strategic move and a way to restore trust in the community following the August debacle.
How Does the $PEPE Surge Relate to Bitcoin's Performance?
It's essential to highlight that $PEPE's ascent came at a time when Bitcoin, the pioneer cryptocurrency, was rallying towards a 17-month zenith of $35,000. This rally was driven by enthusiasm surrounding the potential green light for a spot exchange-traded fund (ETF). Even though Bitcoin's dominance has been at a pinnacle since April 2021, $PEPE stands out as one of the few altcoins that has managed to carve a distinctive path.
