PEPE’s price fell dramatically on Saturday, reversing some of the gains it made earlier in the week. In particular, the price drop caused PEPE to drop to $0.00001088, a decline of 7.5% in 24 hours. Although PEPE’s pricing problems are part of broader market declineThe whales’ recent movements appear to be making the situation worse.
In particular, the cryptocurrency whale recently dumped a huge number of PEPE tokens for ETH. On-chain data shows that a single wallet exchanged over 1.4 trillion PEPE tokens for ETH, contributing to downward price pressure.
Building Expectations for ETF Spot ETF Approvals
According to network data from TheDataNerd, a significant PEPE whale known as “0x837” made a strategic shift, converting over $18 million from PEPE to Ethereum over the weekend. Such a immense exit is a clear bearish signal for PEPE. These Ethereum shares were then incorporated into the Compound protocol, suggesting a long-term investment.
On-chain data shows that the whale recently deposited 300 billion PEPE, worth approximately $3.85 million, on the Binance cryptocurrency exchange. With this deposit, the whale suffered an estimated loss of $1.73 million. Interestingly, it was not a one-time deposit.
Whale initially deposited 1.1 trillion PEPE tokens worth $14.42 million for Binance, which were also likely converted to ETH. As a result, this whale deposited 1.4 trillion PEPE on Binance in the last two days.
Moreover, on-chain data shows that the whale “0x837” withdrew 1,728 ETH worth $5.86 million from Binance, increasing its accumulation to 4,374 ETH worth $14.91 million over the past two days.
Whale 0x837 has already switched everything over $PEPE down $ETH.
3 hours ago he withdrew 1728 $ETH (~$5.86 million) z #Binance 👉 total collected 4374 $ETH (~$14.91M) over the last 2 days.
These $ETH have been inserted #Mixture.https://t.co/vUBwSf5G90 photo:twitter.com/nU5YRUHXXM
— Data Nerd (@OnchainDataNerd) June 29, 2024
Spot Ethereum ETF launch expected
This whale’s decision to convert all of its PEPE holdings to ETH despite the loss suggests a deliberate strategic investment decision. This action reflects the market’s confidence in Ethereum, driven by potential Launch of Spot Ethereum ETFs in July
Many market participants have noticed similarities to the events that occurred with the launch of the Spot Bitcoin ETF and have speculated that Ethereum may see similar growthAccording to Bryan Armour, ETF analyst at Morningstar, the launch of the Spot Ethereum ETF may not generate the same level of excitement as Bitcoin, given the differences in market size between the two cryptocurrencies.
At the time of writing, PEPE is trading at $0.00001129 and has rebounded slightly from Saturday’s lows. However, the meme token has experienced a 3.58% and 3.77% drop in the last 24 hours and seven days, respectively. Ethereum has also experienced a 3.2% drop in the last seven days and is currently trading at $3,390.
Featured image from Reddit, chart from TradingView
