A significant move in the Pepe Coin (PEPE) market has raised alarms among cryptocurrency enthusiasts, as a whale investor offloaded 500 billion PEPE tokens, netting a staggering $45 million in profits. This sale has prompted concerns of a broader selloff in meme coins, which have been experiencing explosive gains amid a market frenzy.

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The PEPE whale, who initially accumulated a massive 2.01 trillion tokens between May and September 2023, sold off a portion of its holdings for $11.8 million on November 14, according to data from Lookonchain. The whale’s original investment of 1,170 ETH, valued at $2.12 million at the time, has now yielded a return of 20x, with the remaining 1.48 trillion PEPE coins valued at around $33.2 million.

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This comes after a 75% surge in PEPE’s price in a single day, fueled by listings on major platforms like Coinbase, Robinhood, and Upbit. The coin’s market cap has now surpassed $10 billion, with daily trading volumes seeing a 200% spike, reaching over $20 billion.

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Meme Coin Frenzy and Selloff Risks

While PEPE has been the standout performer, the broader meme coin sector has also seen dramatic gains. Dogecoin (DOGE), Dogwifhat (WIF), Bonk (BONK), and Floki Inu (FLOKI) have all posted impressive price increases, some in the range of 60-70% over the past week. The rally coincided with the victory of Donald Trump in the U.S. Presidential election, which appears to have further fueled investor enthusiasm for meme coins.

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However, on-chain data from Santiment signals that the meme coin market is experiencing extreme levels of greed and fear of missing out (FOMO), which typically precede sharp selloffs. The social buzz surrounding these tokens has intensified, suggesting that the current price rally may be unsustainable.

Alex Kruger, a prominent economist, weighed in on the current state of the market, stating: “Bitcoin aside, crypto now is mostly about memecoins. That’s what people want. Full stop. And exchanges are giving it to them.” Kruger’s comments reflect the increasing focus on meme coins, with listings for tokens like PNUT and WIF on major exchanges further propelling the market’s bullish sentiment.

A Market at a Crossroads

With PEPE’s recent rise and the surge in meme coin trading volumes, many are questioning whether this is the beginning of a long-term trend or a speculative bubble ready to burst. According to data from Coinglass, PEPE’s open interest has surged by 63% to $316 million, with $48 million in liquidations occurring within 24 hours, further raising the stakes for investors in the space.

Despite the current euphoria, many crypto experts are cautioning about the potential risks of a selloff, especially as whales begin to capitalize on profits. For now, the market remains in a state of volatility, with investors closely watching how the meme coin sector unfolds in the coming days.

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