Bitrabo Editorial
Over the weekend, the price of PEPE experienced a significant drop, undoing some of the gains it had made earlier in the week. This decline led to PEPE plummeting to $0.00001088, marking a 7.5% decrease in just 24 hours. While the broader market downturn played a role in this price setback, recent actions by a crypto whale intensified the situation.
A notable crypto whale executed a large sell-off of PEPE tokens for Ethereum, exchanging over 1.4 trillion PEPE tokens for ETH. This massive transaction added selling pressure on the PEPE price.
Insight into ETH Spot ETF Approvals Anticipation
An analysis of on-chain data by TheDataNerd revealed that a significant PEPE whale, identified as “0x837,” strategically shifted over $18 million from PEPE to Ethereum over the weekend. This substantial move signaled bearish sentiments towards PEPE. The Ethereum acquired from the transaction was then staked in the Compound protocol, indicating a long-term investment strategy.
Further examination of on-chain data showed that the whale transferred 300 billion PEPE tokens, valued approximately at $3.85 million, to the Binance exchange. This transfer resulted in an estimated loss of $1.73 million for the whale. Interestingly, this was not a one-time deposit; the whale had previously moved 1.1 trillion PEPE tokens worth $14.42 million to Binance, likely for conversion into ETH. Therefore, in the last two days, the whale has shifted a total of 1.4 trillion PEPE tokens to Binance.
Moreover, the data also indicated that the whale withdrew 1,728 ETH, equivalent to $5.86 million, from Binance, increasing its ETH accumulation to 4,374, valued at $14.91 million over the past two days.
Expectations Surrounding Spot Ethereum ETF Launch
The decision of whale “0x837” to transition entirely from PEPE to ETH, even at a loss, showcases a deliberate strategic investment move. This choice reflects a certain level of market confidence in Ethereum, fueled by the forthcoming launch of Spot Ethereum ETFs in July.
Experts in the market have drawn comparisons with the introduction of Spot Bitcoin ETFs and speculated that Ethereum might witness a similar upsurge in value. Nevertheless, Bryan Armour, an ETF analyst at Morningstar, pointed out that the launch of Spot Ethereum ETFs may not elicit the same hype as Bitcoin’s due to the disparity in market size between the two cryptocurrencies.
Currently, PEPE is being traded at $0.00001129, showing a slight recovery from the lows witnessed on Saturday. Nevertheless, the meme token has encountered a 3.58% and 3.77% decline in the past 24 hours and seven days, respectively. Ethereum has also experienced a 3.2% downturn in the last seven days, with its current trading value at $3,390.
Image Source: Reddit, Chart Source: TradingView