PEPE – one of the leading meme coins by market capitalization – is gradually regaining the interest of investors, as the crypto market witnesses a strong surge from Ethereum.
The wave of investment in Ethereum opens up opportunities for PEPE.
The recovery of PEPE occurs simultaneously with the strong growth of Ethereum – driven by cash flow from large institutions and increasing acceptance from businesses. This raises expectations that tokens based on the Ethereum ecosystem, especially prominent names like PEPE, will benefit directly.
In the past 24 hours, the price of PEPE has recorded an increase of nearly 10% – outperforming other meme coins like SHIB and TRUMP – which both increased by 6%. This surge has made PEPE one of the best-performing meme coins in the past week, even as the overall market remains volatile.
This token inspired by the frog symbol is effectively riding the wave of excitement from Ethereum – as capital flows from ETH begin to shift towards small-cap tokens within the same ecosystem, and PEPE is the focal point attracting attention.
The strength from Ethereum ETFs and the accumulation trend.
According to analysts, the rise of PEPE is reinforced by the spillover effect from Ethereum, especially after ETH ETF funds recorded an impressive trading week. Specifically, on August 11, the net capital inflow into major Ethereum ETFs officially exceeded 1 billion USD, with BlackRock's ETHA leading the way.
This is an important milestone, showing that the traditional finance (TradFi) sector is gradually recognizing Ethereum as a crucial infrastructure asset in the DeFi, Web3, and smart contract fields.
The explosion in demand from large institutions has led to a wave of ETH accumulation, according to analysts – and this trend could spread to smaller tokens like PEPE.
Strong correlation with ETH – Forecasting PEPE price trends.
Data from the beginning of 2024 to now shows that PEPE has a price correlation coefficient of up to 0.76 with Ethereum, according to statistics from DefiLlama. This means that each strong increase of ETH is likely to pull up the price of PEPE – with a higher degree of influence than most other meme altcoins.
The number of PEPE wallets increased by 25% despite the price correction.
Another bright spot comes from the fundamentals: despite the price having fallen nearly 50% since January 2024, the number of wallet addresses holding PEPE has still increased by more than 25%. This shows that retail demand for PEPE remains strong even during a period of lackluster market activity.
Technically, the PEPE price chart has formed a symmetrical triangle pattern since the beginning of the year – a pattern often associated with the potential for a bullish breakout in the near future.
Risks from large wallet concentration – A latent concern.
However, the lurking risks cannot be overlooked. On-chain data shows that the top 10 PEPE wallets control 37.5% of the token supply. This raises concerns about potential market manipulation or sudden sell-offs if whales decide to exit their positions.
This is also a common issue in the meme coin world. For example, up to 94% of TRUMP and MELANIA token supply is held by just 40 wallets – which means liquidity can 'evaporate' very quickly if a small group of large investors withdraws.
The strong increase of Ethereum, supported by ETF funds and institutional capital inflow, could be a potential leverage to help PEPE break out. If ETH continues to maintain its upward momentum and the technical pattern of PEPE is confirmed, investors could witness a significant price increase of this meme token in the coming weeks.
However, investors still need to be cautious and actively conduct research – especially closely monitor the activities of whale wallets and not overlook sudden reversal signals that often occur in the meme coin market.