Pepe, a memecoin, sees a remarkable 100% surge in two days, reaching a 10-month high on Feb. 27. Its market cap exceeds $1 billion.
Pepe, a well-known memecoin, has witnessed an impressive surge of 100% over the past two days, reaching its highest point in 10 months on February 27th.
The coin's price stood at $0.0000028, marking a 30% increase in the last 24 hours. At one point, it even reached $0.0000029 before retracting to $0.00002766, as reported by CoinMarketCap.
This recent surge has propelled Pepe to surpass Bonk (BONK), securing its position as the third-largest meme coin by market capitalization, which now exceeds $1 billion. Furthermore, its trading volume surged by 80% to $1.39 billion during the same period.
This impressive performance mirrors a broader rally in meme coins, often regarded as speculative investments in the growth of blockchain ecosystems. These tokens collectively experienced an average gain of 6.6% in the past 24 hours, indicating a growing interest across various networks.
The rally has also affected short positions significantly, with Coinglass reporting approximately $4.04 million in shorts liquidated within this timeframe.
The resurgence of meme coins like Pepe coincides with the overall recovery of the crypto market, largely influenced by Bitcoin's recent rally to surpass the $57,000 mark, a level not seen since November 2021. This momentum has not only benefited Pepe but has also reignited enthusiasm across the meme coin sector, with tokens such as Floki Inu (FLOKI) and Dogwifhat (WIF) witnessing gains of over 30%, and Dogwifhat specifically surging nearly 60% before retracing.
The Open Interest-Weighted Funding Rate for Pepe has also witnessed a significant increase, indicating bullish sentiment among traders. The rate surged from 0.0169% to 0.12%, although it has since adjusted to 0.1014%. This movement suggests traders' growing willingness to pay for holding long positions, anticipating further price increases.
On-chain metrics reveal a resurgence in the token's popularity, with the number of Pepe holders growing from 155,735 to over 157,600 in just three days. This growth is partly attributed to substantial buying activities by large accounts, as well as the token's recent addition to platforms like Robinhood Crypto in select EU jurisdictions. Binance's promotion of Pepe, featuring a 700,000 PEPE giveaway, has further fueled interest.
The rally extends beyond Pepe, with other memecoins like GROK and LADYS also recording gains of 22% and 19.9% over the past day.
During the same period, the pioneering memecoin DOGE recorded an approximate 12% increase, with SHIB and BONK closely trailing with gains of around 10% each. This trend is supported by a surge in retail interest in cryptocurrencies, evidenced by a 200% increase in crypto-related Google searches.
The entry of institutional money, highlighted by the launch of spot Bitcoin ETFs by traditional finance giants such as BlackRock, has also played a crucial role in revitalizing the crypto market. The success of these ETFs, particularly the Newborn Nine, signals a shifting perspective toward cryptocurrency investments among institutional investors.
Memecoins, often perceived as lacking intrinsic value, have gained traction as speculative investments within their respective ecosystems. Organizations like the Avalanche Foundation, which oversees the Avalanche blockchain, have started supporting meme tokens on their network, recognizing the cultural and memetic appeal they hold for investors.