The craze for memecoins such as PEPE has come to a sudden halt as prices dramatically drop. This comes as a relief for Bitcoin users, who were facing major disruptions to the network due to the surge in new tokens. Just a week ago, PEPE reached a peak price of 0.00000431 and had a total market value of $1.6 billion. However, the coin has since dropped to 0.00000172, a drop of 60%, with a current market value of $720 million. It's estimated that speculators were behind this price surge, as they liquidated some of their BTC and ETH in exchange for memecoins.

The memecoin fervor likely indicated that the market was near its peak, with the coins usually significantly dropping immediately following their peak. A similar pattern occurred in May 2021, when Dogecoin had a large spike followed by several months of sustained drops. It's true that when the hype dissipates, as it has with PEPE, values tend to plummet, leaving investors to suffer large losses. In addition, cashing-out of memecoins is often complicated because of the lack of liquidity in many coins. Despite this, PEPE does still have an impressive $360 million daily trading volume.

The Bitcoin network is now taking a much needed break, as the number of pending transactions and transaction fees have both lowered. This wouldn't have been possible without the conclusion of memecoin fever. However, despite transaction fees decreasing to around $3.76, daily transactions are still high, with around 600,000 transactions recorded daily according to BitInfoCharts data.

Ultimately, the memecoin craze has come to an end, but it serves as a warning of what can occur at a market peak. Everyone should be mindful of when the hype dies and the prices start to fall, as this indicator often leads to more sustained drops.



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