Pepe Coin ($PEPE) and Value Decline: Detailed Reasons

Pepe Coin ($PEPE), one of the prominent meme coins in the cryptocurrency market, has recently experienced a sharp decline in value. There are several factors contributing to this downturn, including fake news, sell-off activities by large investors, and market trend changes. Below is a detailed analysis:

1. Rumors of Misinformation Causing Displacement Effect One of the main causes of $PEPE price fluctuations is misinformation about Ethereum founder Vitalik Buterin buying 508.6 million PEPE tokens. This news spread quickly on social media platforms, causing the token price to surge rapidly in a short period of time. However, when this information was confirmed to be untrue, investor confidence was shaken, leading to selling pressure and a sharp drop in coin value.
2. Sell-off From Large Investors Some "whales" - investors holding a large amount of $PEPE - have started liquidating their assets. This significantly increases the supply of $PEPE on the market, putting downward pressure on prices. This phenomenon not only disrupts supply and demand balance but also creates an unstable psychology, causing many retail investors to panic sell to minimize risks.
3. Decrease in Community Attention On-chain data shows a decrease in transaction volume and the number of active wallet addresses for $PEPE. This reflects a decline in community participation and is a clear sign of waning interest in this coin.
4. Trend of Transition to Utility Tokens The cryptocurrency market is witnessing significant changes as investors gradually focus on tokens with practical utility value. Coins such as $PEPE, which were originally built on humor and community effect, are losing their appeal. This has led to a shift in capital flow towards projects with longer-term application potential. Conclusion The devaluation of $PEPE is the result of a combination of factors: from unfounded rumors, selling pressure from large investors, to market trends. In the increasingly mature cryptocurrency market, meme coins like $PEPE are facing significant challenges in maintaining attractiveness and community trust.