PEPE’s price dropped 7.5% as a major whale sold 1.4 trillion tokens for Ethereum

The price of PEPE coin experienced a significant decline on Saturday, eroding some of its previous gains. The value plunged to $0.00001088, marking a notable 7.5% decrease over a 24-hour period.

This decline forms part of a broader market downturn, but the involvement of large investors, known as whales, has exacerbated the situation.

A major holder of PEPE tokens, or a "whale," executed a substantial sale of their tokens in exchange for Ethereum (ETH), intensifying the downward pressure on the market.

On-chain data indicates that a prominent individual with the identifier "0x837" exchanged over 1.4 trillion PEPE tokens for ETH, amounting to over $18 million.

This action signaled a bearish sentiment for PEPE. The acquired ETH was deposited as collateral on the Compound protocol, indicating a strategic approach with a long-term perspective.

Additionally, the whale transferred 300 billion PEPE tokens, valued at approximately $3.85 million, to Binance, incurring a loss of $1.73 million. This was not an isolated event, as the whale had previously deposited 1.1 trillion PEPE, worth $14.42 million, and likely converted it to ETH.

Within a two-day span, the whale moved a total of 1.4 trillion PEPE tokens to Binance. Subsequently, the whale known as "0x837" recently withdrew 1,728 ETH from Binance, valued at $5.86 million. Their total ETH holdings now stand at 4,374 ETH, worth approximately $14.91 million.

The whale's decision to convert PEPE to ETH, despite incurring losses, highlights a calculated investment strategy. This surge in favor of Ethereum is driven by market confidence, which is largely influenced by the anticipated launch of Spot Ethereum ETFs in July.

Some market participants draw parallels to the introduction of Spot Bitcoin ETFs, suggesting that Ethereum could experience a similar surge.

However, Bryan Armour, a Morningstar ETF analyst, cautions that the launch of Spot Ethereum ETFs may not generate as much excitement as Bitcoin, due to the contrasting market sizes of the two cryptocurrencies.

PEPE's price struggles stem from broader market trends and significant whale activity. The substantial conversion of a large quantity of PEPE to ETH, despite incurring losses, suggests a deliberate shift in strategy towards Ethereum.

The upcoming debut of Spot Ethereum ETFs is a driving force behind this trend. Analysts remain cautious about the potential for Ethereum to experience the same level of spike as Bitcoin's ETF launch, citing market differences. The coming weeks will be pivotal in shaping the trajectories of both PEPE and Ethereum.