Crypto trader turns $3K into $46M in one month as PEPE price soars

Pepe Memecoin Trader Earns $46 Million Windfall, Reviving Memecoin Season?

An anonymous trader has made an astonishing profit of over $46 million by trading the Pepe (PEPE) memecoin, raising the question: can the GameStop saga ignite a resurgence in memecoin popularity?

Trader's Lucrative PEPE Investment

The savvy trader invested $3,000 in Pepe on April 15th, purchasing 4.9 trillion tokens. Today, those tokens are worth over $56 million, representing a staggering 15,718-fold return. The trader has since sold $1.41 trillion PEPE for $7.4 million, leaving them with $3.5 trillion PEPE valued at $38.9 million, according to Lookonchain's May 15th report.

Pepe's Market Dominance and Growth

Pepe's current market capitalization of $4.5 billion places it third among memecoins, behind Dogecoin (DOGE) and Shiba Inu (SHIB). Over the past week, Pepe has experienced a surge of over 40%.

Memecoins: A Reflection of Disillusionment

Hao Yang, Head of Financial Products at Bybit exchange, attributes the recent success of memecoins to a sense of disillusionment among younger generations, similar to the rise of punk rock music.

"Memecoins, like punk rock, represent a symptom of disillusioned young investors who feel that the opportunities that were available to their parents are no longer within their reach," Yang told Cointelegraph.

Additionally, Yang believes that memecoins highlight the absurdity of the current financial system:

"By creating tokens out of thin air and inflating them to billion-dollar valuations, these creators are demonstrating the absurdity of our fiat system."

GameStop's Influence on Memecoins

Pepe's recent rally may be linked to the renewed interest in GameStop stock (GME). On May 13th, GME shares began rising following the unexpected return to social media of Keith Gill, known for sparking the 2021 GameStop short squeeze.

Pepe reached a new all-time high of over $0.000010 on May 13th, the day after Gill's return. GameStop shares surged by over 111% in the 24 hours following his reappearance.

Xiaohan Zhu, CEO of Meter, believes that the GameStop rally is the primary driver behind Pepe's price increase:

"The GME saga may have contributed to PEPE's momentum. However, I attribute the recent market decline in crypto primarily to profit-taking and the listing of several large-scale projects on exchanges, absorbing much of the market's liquidity."

Memecoin Run on the Horizon?

While predicting a full-blown memecoin rally is challenging, some traders speculate that profits from GameStop could flow into altcoins, as seen during the 2021 bull run. Crypto analyst CryptoAmsterdam's May 14th report suggests that the 2021 altcoin surge began shortly after the GameStop rally.

Pepe's Unique Appeal

Not all memecoins will benefit from the GameStop saga, but Pepe appears well-positioned for further gains due to its relatable narrative for retail investors, according to Aleksandra Artamonovskaja, Head of Art at TriliTech, Tezos:

"Beyond being a well-known internet meme, Pepe represents a culture of its own and symbolizes resistance against the establishment, freedom, and hope - a narrative that resonates with the GameStop saga."

Disclaimer: This article does not provide investment advice or recommendations. All investments and trading involve risk, and individuals should conduct their own research before making any decisions.