31 May 2024

Phew! It has indeed been a dull week in crypto and, we believe, such weeks are good. Bitcoin continues to consolidate between $66,000 and $69,000 – a break either way will confirm crypto’s next decisive direction.

May has been kind to the market after grim predictions. Will June be better? With Ethereum ETFs likely to start trading, the odds are stacked in favour.

Today, we track the growth of PEPE in 2024, its brief entry to the top-20 crypto asset list and its emergence as the third-largest memecoin.

First up, lets dive into the top-3 stories and macros of the week.

Top-3 stories of the week:

1

2

3

The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

• Total crypto market cap - $2.54 trillion - Unchanged 

• Bitcoin price - $68,481 - UP 1.2%

• The dollar index (DXY) - 104.83 - DOWN 0.2%

• Bitcoin Dominance - 54.54% -  UP 1.2%

• Crypto Fear and Greed Index - 73 - Market is in Greedy State

THE HOT TAKE

Emergence of PEPE

Back in the day, memes were simple forms of expression and delight. Memecoins started as a playful nod to internet culture but quickly gained traction as the next big thing. A few bull runs and market dips later, the memecoin ecosystem has evolved into a legitimate play in the crypto arena.

PEPE’s recent ascent has not only grabbed headlines but also spawned a litter of copycats and spin-offs, each trying to cash in on the meme magic. From frog-inspired tokens to others we can't even pronounce, the meme token ecosystem is expanding faster than a viral TikTok trend.

Today, we are analysing Pepe’s early days followed by recent rise along with some numbers to back it up, all to gauge the token's current status and anticipate its future trajectory.

Pepe (PEPE) hit an all-time high of $0.00001698 last week, pushing the meme coin's year-to-date gains toward an impressive 1,000%. Data from IntoTheBlock reveals that over 96% of PEPE investors were seeing gains on paper. The meme token has become the third to cross the $6 billion market cap (after Dogecoin & Shiba Inu) and has added close to 66% of it just in May.

Impressive start followed by a scare

Shortly after its public launch in April 2023, Pepe became popular. To provide some perspective, Dogecoin (DOGE) took almost four years for its market capitalization to surpass $1 billion. In contrast, Pepe Coin reached the same benchmark within three weeks of its launch

In August 2023, the Pepe Coin community was alarmed when 16 trillion PEPE tokens (worth about $15 million) were unexpectedly moved from the project’s multi-signature wallet to several centralized exchanges, in a classic rug-pull. To top it all off, in a startling revelation, the official PEPE account disclosed that few of their insiders had gone rogue and were responsible for the bulk transfers.

Resurgence in 2024

PEPE has done a 10x in the past 3 months. Its recent surge in activity and the price action can be attributed to the spot ETF approvals for Ethereum. Since PEPE is an ERC-20 meme coin, ETH-based news has played a pivotal role in propelling the meme coin higher. We track key trends around these.

Onchain activity has doubled

The number of unique blockchain addresses actively using PEPE has more than doubled in the past month, a clear signal of its surging popularity. This surge is further evidenced by data from IntoTheBlock, revealing a staggering 230% increase in daily active PEPE holders, now reaching 9,830.

Institutions are buying Pepe?

Heightened whale activity 

How long can this run continue?

While the recent approval of spot Ethereum ETFs has acted as a catalyst, PEPE has started to witness volatility in the past couple of days. As majority of the holders are in profit, we can expect profit-taking in the short term.

PEPE’s price might tank if Bitcoin can't hold the key support level around $66,000. The weekly Relative Strength Index (RSI) for PEPE has fallen below 70, showing that bullish momentum is weakening. However, if buyers can maintain the current support level, PEPE’s price could go into price discovery.

Key Takeaway

PEPE has quietly established itself as a strong #3 in the memecoin ecosystem. It is still 4x away from DOGE’s current market cap which would be a minimum viable target this bull run for the token.

While PEPE’s largest gains may be behind it, its current size, growing activity, and strong community support make it a significant player to bank on if you are into memecoins.

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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.Ethereum ETF approval is the best news of 2024 🚀