Shiba Inu (SHIB) and Pepe Coin (PEPE), two popular Ethereum-based meme coins, have defied the sluggish broader crypto market by remaining relatively stable. However, recent whale activity involving these coins has raised questions about their future performance.
According to the on-chain analytics platform Spot On Chain, two major whales offloaded a combined $25.95 million worth of SHIB and PEPE to the cryptocurrency exchange Binance. The first whale, identified by the address 0x42a, sold a whopping 1.088 trillion SHIB, valued at $18.12 million. This whale, who likely accumulated these coins during the November–December 2023 market bottom, is estimated to have profited a significant $8 million, reflecting a 79% gain.
The second whale, address 0x837, sold 700 billion PEPE, worth $7.83 million. However, this whale still holds a substantial 800 billion PEPE, valued at $9.22 million. Unlike the first whale, this seller appears to be at a loss, with an estimated $3.47 million decline in their PEPE holdings.
The timing and nature of these transactions suggest strategic moves rather than panic selling. The first whale, having bought at market lows, seems to be capitalizing on SHIB’s recent price stability. Their hefty profit indicates a calculated exit strategy, possibly anticipating a future downturn or seeking opportunities elsewhere in the cryptocurrency market.
The PEPE sale, on the other hand, carries less optimistic implications. The realized loss suggests a potential reassessment of the whale’s investment strategy or a need for immediate liquidity. However, their remaining holdings indicate they haven’t completely abandoned PEPE, suggesting diversification or hedging against further losses.
This whale activity highlights the inherent volatility of meme coins. Despite their lighthearted origins, these digital assets can lead to substantial financial gains or losses. Interestingly, both SHIB and PEPE have demonstrated resilience compared to established players like Bitcoin, remaining in positive territory during the recent market slump.
At the time of writing, SHIB is up 1.67%, trading at $0.0000175. Its trading volume has also surged by 116.76%, showcasing increased market activity. Additionally, rising Open Interest suggests growing investor confidence.
Similarly, PEPE has seen an 11% price increase from yesterday, reaching $0.00001186. Its trading volume has skyrocketed by 103%, and open interest has spiked by 23.37%, indicating significant market interest.
While the whale sell-off raises questions, SHIB and PEPE’s current performance suggests underlying strength. It remains to be seen whether these meme coins can maintain their positive momentum or succumb to broader market pressures.