Crypto

PEPE’s Surge to Top 20 Tokens Turns Early $460 Purchase into $3.4M Profit

PEPE's market cap hits $6 billion, turning $460 investment into $3.4 million profit.

By Bill Bullington

5/23, 08:37 EDT
Bitcoin / U.S. dollar
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Key Takeaway

  • Pepe (PEPE) surged into the top 20 tokens by market cap, reaching $6 billion, driven by Ethereum ecosystem growth and ETF anticipation.
  • A trader turned a $460 investment in PEPE into $3.4 million, highlighting the token's explosive potential.
  • PEPE's rise has minted several millionaires and is now challenging Shiba Inu (SHIB) with its rapid market capitalization growth.

PEPE's Meteoric Rise

Pepe (PEPE) has surged into the ranks of the twenty largest tokens by market capitalization, driven by a "beta bet" narrative that has added nearly 40% to its value over the past week, according to CoinMarketCap data. Issued in April 2023, the frog-themed token quickly reached a $1 billion market capitalization within weeks of its launch. As of Thursday, PEPE's market capitalization has soared to $6 billion, making it the biggest meme coin launch of 2023, surpassing other meme coins like bonk (BONK) and dogwifhat (WIF).

Levered Bet on Ethereum

PEPE's recent rise, alongside mog (MOG), is largely attributed to its use as a levered bet on the growth of the Ethereum ecosystem. Traders are anticipating the approval of a spot ether exchange-traded fund (ETF) in the U.S., which has fueled speculative interest in the token. This narrative has been a significant driver behind PEPE's impressive performance, as investors look to capitalize on potential regulatory developments in the crypto space.

Millionaire-Making Trades

The rapid appreciation of PEPE has turned early investors into millionaires. On-chain analysis by Lookonchain revealed that a crypto address that purchased approximately $460 worth of PEPE tokens shortly after its launch has now bagged over $3.4 million in profits. The buyer spent 0.22 ETH to acquire 324.9 billion PEPE on April 15, 2023, and deposited the tokens to crypto exchange Binance on Wednesday, where they were presumably sold.

This is not an isolated case. Several connected wallets have turned modest initial investments into substantial fortunes. For instance, a few wallets converted about $1,200 of initial capital into over $9 million in the week following PEPE's launch. Another buyer turned a $260 purchase into over $3 million in profits. These success stories highlight the high-risk, high-reward nature of meme coin investments.

Future Prospects and Market Impact

Some traders believe that PEPE could eventually surpass the dog-themed shiba inu (SHIB), which currently holds a market capitalization of $14 billion. The speculative fervor surrounding PEPE and its potential to flip SHIB underscores the volatile and unpredictable nature of the meme coin market. The use of automated bots by meme coin traders, who typically purchase small amounts of new tokens based on specific criteria, has also played a role in PEPE's rapid ascent.