The Ethereum network’s memecoin landscape witnessed a significant jolt as two substantial dormant wallets transferred a staggering 2.27 trillion PEPE. Valued at approximately $10.19 million, these transactions have refocused market attention on PEPE and Shiba Inu, intensifying trading activities and volatility.
Significant Wallet Activity Does Not Trigger Price Drop
One of the wallets, inactive for a year but previously linked to Coinbase transactions, moved $6.53 million worth of PEPE. Meanwhile, a second wallet, silent for four months, conducted a $3.66 million transfer. Such mobilization of large and old wallets often signals a potential sell-off on exchanges.
Contrary to expectations, a substantial market pullback did not materialize. Purchasers swiftly absorbed the potential selling pressure, with 84% of the day’s trading volume occurring in the past six hours, indicating that the bulk of the newly available supply was quickly taken up.
Despite the movement of 2.27 trillion PEPE by two formerly dormant large wallets, the market witnessed robust buying rather than aggressive selling.
Narrowing Gap Between PEPE and SHIB
During this activity, PEPE’s daily appreciation exceeded 10.8%, as recorded by TradingView data. Shiba Inu also saw a 1.66% increase, maintaining its recent strong performance. Consequently, the market capitalization gap between the two assets narrowed to $1.06 billion.
Shiba Inu has long been a leading asset among Ethereum-based memecoin projects. The recent surge in PEPE has reignited debates over market dynamics, suggesting a renewed speculative liquidity focus on memecoins within the Ethereum ecosystem.
Concentration Risk Comes to the Fore
Despite the market’s upswing, one core risk involves a concentration of supply among a few large holders. Arkham Intelligence data reveals that Tron founder Justin Sun has significantly increased his PEPE holdings over the past ten days, amassing 2.82% of the total supply, equating to approximately $51.25 million.
Glossary Note: Arkham Intelligence is a blockchain data platform that tracks wallet movements and address linkages, enabling monitoring of significant investor accumulations and transfers.
Arkham Intelligence data revealed Justin Sun accumulated 2.82% of the total PEPE supply over the last ten days.
The data indicates that major investors control 94.66% of the PEPE supply. This suggests that the actions of a few dozen wallets could significantly influence not only the price trajectory but also the competitive dynamic between PEPE and SHIB.
