BitcoinBTC and ethereum have crashed back this week, with the latest rally crumbling in the face of Federal Reserve uncertainty.
The bitcoin price has dropped back under $30,000 per bitcoin, down 10% over the last week, with the ethereum price down around the same after founder Vitalik Buterin issued a future bull run warning.
Now, a new meme coin designed to rival dogecoin has rocketed 21,000% since it was launched last weekend, making it already the sixth largest meme coin by market cap at around $150 million.
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“Meme coins are once again polarizing the crypto world. A new project, pepe, has amassed a $100 million market cap in less than one week,” analysts at crypto research company Messari wrote in a report this week. “Similar to previous meme coin price surges, pepe has generated eye-popping returns for its early investors.”
Pepe, based on the Pepe the Frog meme that’s been adopted by various internet communities, has a “self reported” circulation of 420.69 trillion and carries a warning on its Coinmarketcap listing that traders should “exercise caution.”
Messari analysts also warned that while early investors may be looking at large returns on-paper, they will struggle to turn their pepe into any other cryptocurrency, let alone dollars. Pepe’s liquidity pool is just $3 million, compared to ethereum’s daily trading volume of $775 million.
“One of the earliest buyers has turned a 0.125 ethereum purchase into close to $2 million on chain,” the report read. “However, since this individual owns 1.4% of the total supply, they will not be able to realize these returns without crashing the market.”
Earlier this year, a similar dogecoin-challenger, the solana-based bonk, mounted a challenge to the memecoin throne but failed to hold onto its massive gains.
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