The recent upswing in the market, triggered by Bitcoin’s breakout above $35,000, seems to have emboldened meme coin traders to take more risks. These traders often favor tokens with strong social appeal over those with a clear use case.
Pepe (PEPE), a widely recognized meme coin featuring a frog motif, has seen a remarkable 30% surge in the last day, indicating heightened on-chain trading activity.
Over the past seven days, this prominent meme coin has experienced a staggering 93% surge, reaching a two-month high.
While it’s challenging to pinpoint the exact catalyst for this price surge, several potential factors may be at play.
Earlier this week, Pepe executed a token burn of 6.9 trillion tokens, addressing concerns about the team’s token holdings. The team currently holds 3.79 trillion tokens, a relatively small amount in the broader market context.
The decision to burn tokens came after three Pepe team members engaged in unexpected transactions from the multisig wallet linked to the project, resulting in the unauthorized acquisition of Pepe tokens worth millions of dollars.
Pepe has also welcomed a new advisory team, as announced on the Pepe X (formerly Twitter) account. This team is actively exploring potential uses for the remaining 3.79 trillion tokens associated with the original team’s CEX multisig wallet.
In addition, a less obvious catalyst may be contributing to Pepe’s substantial price surge: significant network growth. According to on-chain analytics firm Santiment, as traders focused on Bitcoin and Ethereum amidst the bullish market resurgence, mid-cap assets like PEPE have witnessed substantial growth in their networks.
Santiment highlights that this group of cryptocurrencies is experiencing significant spikes in the number of new addresses created daily during the market’s recovery.
As of the time of writing, PEPE has surged by 20.32% in the last 24 hours, trading at $0.00000121 according to CoinMarketCap data.
