Pepe Pops 7,000% in the Cryptoverse as Every Frog Gets its Chance
Pepe, a new “memecoin” inspired by an anthropomorphised frog popular in internet memes, leapt nearly 7,000% and hit a market value of $1.8bn in the 17 days after its 16 April launch, according to data tracker CoinGecko. Pepe’s rapid gains have sparked renewed investor interest in the ultra-volatile class of crypto, pushing overall trading volumes to $2.6bn in the first week of May from $408,000 the week before, according to Dune Analytics.
Pepe is the fastest-growing cryptocurrency on the Ethereum blockchain and is hosted on major exchanges including Binance, where it has “no utility” and acts as nothing more than a form of gambling or entertainment, the exchange said. Pepe’s volatility has also pushed up Ethereum transaction fees as the coin’s listing opened the door to derivative trading, including with leveraged exposure. Critics warn that memecoins are valueless beyond speculation, much like bitcoin and ether, whose backers argue their blockchain-based platforms offer practical use as a store of value or payment system. The most widely known memecoin is dogecoin, with a market capitalisation of $10bn followed by shiba inu at $5bn.
I would still be very cautious to buy them. It’s gambling in its purest form.