- A massive shift as millions of SHIB and BONE tokens get exchanged for PEPE.
- Despite a decrease in circulation and active addresses, PEPE garners increased attention from large investors.
From SHIB to PEPE: Reading the Whale Signs
Amid the buzz surrounding Shibarium’s mainnet launch, a significant segment of the crypto market—especially the ‘whales’ or large investors—appears to have taken a strategic pivot. Their interest seems to have gravitated more towards Pepe [PEPE] than the much-touted Shiba Inu [SHIB] token.
Data from Lookonchain points towards a noticeable shift. One particular whale, a holder of both SHIB and its sister-token, BoneShibaSwap [BONE], initiated a complete sell-off of these assets in favor of PEPE. Following this, an impressive deposit of 143 billion SHIB made its way to Binance, suggesting an intent to capitalize by selling.
This strategy, which can be summarized as “buy the rumor, sell the news”, points towards a shift in value perception, from SHIB to PEPE.
As the numbers reveal, both BONE and SHIB witnessed disappointing performances post the Shibarium inception. Within a day, they’ve plummeted 20.08% and 9.20% respectively. PEPE, conversely, registered a moderate 5.34% decline.
However, a closer examination of PEPE’s on-chain activities unravels a more nuanced story. Santiment’s data shows that while PEPE’s social volume oscillated over the past month, there’s a silver lining: the number of PEPE holders has risen. From 132,000 in mid-July to 137,000 now, it indicates that roughly 5,000 new participants are buying into the PEPE narrative. This swelling investor base might soon influence PEPE’s price trajectory favorably.
A Closer Look at PEPE’s On-Chain Metrics
Despite the surge in holders, PEPE’s active addresses (a key metric reflecting daily token interaction) have shown a decline over the last month. From 58,000 on 21 July, it’s down to 40,100 currently. A decrease in this metric generally signals reduced engagement in terms of unique addresses making transactions. In simpler terms, even as PEPE garners more holders, the day-to-day activity surrounding the token seems subdued.
This dwindling engagement also mirrors in PEPE’s circulating supply, which has dropped to 80.25 trillion. Yet, when juxtaposed against SHIB in terms of market capitalization, the difference remains stark. PEPE boasts a market cap of $464.54 million, dwarfed by SHIB’s massive $5.24 billion.
This intriguing dynamic between PEPE and SHIB raises essential questions about market sentiment and the possible trajectories these meme tokens might take in the foreseeable future.