PEPE Flips Polygon’s MATIC: Why is the Meme Coin Surging?

The meme coin PEPE surpassed Polygon’s MATIC in market capitalization. This shift in market dynamics is drawing attention to the factors propelling PEPE’s rise. The surge in PEPE’s value has sparked discussions across the crypto community, highlighting the nature of the market.

Analyst Crypto Rover posted on X that PEPE had flipped MATIC, marking a step for the meme coin. This development comes on the heels of a price rally for PEPE. According to onchain analytics firm Spot On Chain, a whale withdrew 1.323 trillion PEPE from Binance at approximately $0.00001378, costing around $18.2 million. 

With the price surging 81% over seven days to a new ATH, the whale’s holdings are now valued at $22.1 million, a 21% gain, according to Spotonchain. PEPE, as of this writing, trades at $0.00001664, with a daily trading volume of $1.948B. This shows an increment of 6.12% in the last day and a 76.88% rise over the past week.

The whale’s transactions on Binance suggest a strategic move to hold or sell at a higher price. This action has contributed to PEPE’s price surge, as such large transactions can influence market sentiment and drive up prices. 

Crypto Patel highlighted this event, emphasizing that PEPE flipping MATIC in market cap is noteworthy given MATIC’s utility in scaling Ethereum, providing staking rewards, enabling governance votes, and powering DeFi and DApps.

The rise of PEPE amidst the backdrop of established crypto assets like MATIC underscores the nature of the crypto market. MATIC offers substantial utility and a solid foundation within the Ethereum ecosystem. PEPE’s surge, on the other hand, is primarily driven by market speculation and the meme coin phenomenon. Despite this, PEPE’s market cap overtaking MATIC signals the increasing influence of meme coins in the crypto space.

The critical question remains whether the whale will hold or dump their PEPE holdings. If the whale decides to sell, it could lead to a price correction. However, if they continue to hold, it might further bolster market confidence in PEPE. The community will be closely watching these developments to gauge the future trajectory of PEPE’s price.