- Short-term investors and BTC whales have become increasingly involved with PEPE.
- A look at PEPE and Bitcoin revealed an interesting relationship between these cryptocurrencies.
Pepe [PEPE] was one of the most sought after meme coins at the beginning of the year. As its popularity grew, so did the number of addresses, which stood at around 137,000 at the time of writing. In contrast, at the time of writing, only 10,300 addresses had Bitcoin.
Read Bitcoin [BTC] Price forecast 2023-2024
BTC whales play the meme coin game
It wasn’t just short-term addresses that held PEPE, like a lot of Bitcoin [BTC] Whales were also observed to show interest in the meme coin. According to Nansen, of all addresses with PEPE and BTC, 1.27% of the addresses had both coins.
In total, nine addresses contain more than 50,000 BTC.
There are 137,000 addresses $PEPE compared to 10.3k for $BITCOIN, but only 1.27% of addresses have both coins
Who are these 1.87k memecoin traders and are there any interesting addresses to dive into?
Let’s see with Token Overlap… pic.twitter.com/xQJFOG0X1C
— Nansen 🧭 (@nansen_ai) August 16, 2023
An address called hgvmax.eth emerged as the main holder of both Pepe and Bitcoin. The combined value of hgvmax.eth’s Pepe and Bitcoin assets exceeded $650,000 at the time of writing. However, their most substantial interest was in Unibot, where their ownership stretched to over $800,000.
On the contrary, the main Bitcoin address also involved in PEPE belonged to the entity known as Token Millionaire. This address made the first of its numerous purchases on May 15, collecting Bitcoin worth $3.5 million.
Remarkably, the address’s affinity with Pepe was reflected in a smaller sum of $12,000.
Not just limited to PEPE
An even more notable participant, known as the Elite DEX trader, began investing in mid-May, when they purchased a substantial 18.3 million tokens. By gradually increasing their holdings, they recovered most of their initial investment and reached an average token cost of $0.0036, according to Zerion.
Similar to Token Millionaire, this merchant also owned a modest amount of Pepe, albeit only a small remnant due to the profitable sale of their primary stack.
This Elite DEX trader showed increased activity in meme coin trading, with an eclectic mix of tokens in their portfolio. In addition to Bitcoin and Pepe, their involvement expanded to several other cryptocurrencies, forming a diverse investment strategy.
Correlation between BTC and meme coins
According to Nansen’s data, many of the other top Bitcoin holders have previously owned or are currently holding Pepe, including four of Bitcoin’s top 10 holders. This interesting relationship between BTC and meme coins can provide context on what the future holds for these cryptocurrencies.
In the past three months, PEPE has shown the most correlation with the price of BTC in the month of July. Next Shiba Inu [SHIB] and Dogecoin [DOGE] showed similar price movements to BTC in the early parts of August.
However, at the time of writing, no huge correlation had been observed between any of the meme coins and BTC, as the king coin only showed sideways movements during this period.
Source: Sentiment
On a social level
Social activity will play a vital role in determining the success of these meme coins in the future. For PEPE, social mentions and social engagement increased by 52.65% and 53.4% respectively.
For DOGE, the increase was 20.6% in terms of mentions and 1.1% in terms of engagement. Shiba Inu saw the highest spike in the meme coin sector, seeing a 119% increase in terms of mentions and 74.5% in terms of engagements over the past week.
Source: Lunar Crush
Realistic or not, here is PEPE’s market cap in terms of BTC
In terms of overall sentiment, it was noted that all of these meme coins had seen a huge rise in weighted sentiment. This implied that the positive outlook for these tokens was greater than the negative one at the time of writing.
Source: Sentiment
However, the emergence of tokens like BALD could endanger these meme coins and affect their continued dominance.