- Pepe crypto price surged last week after it went public in Uniswap.
- Floki Inu soared on Monday after being listed in Binance US.
- The two meme coins have plunged on Wednesday as the rally loses traction.
Floki Inu and Pepe prices nosedived sharply on Tuesday as the recent rally faded. Pepe, a new crypto token that aims to be the next big meme token, plunged to a low of 20.0e-8, which was about 50% below the highest point last week. Similarly, Floki Inu price has plunged by over 28% from this week’s high.
Pepe price loses momentum
Meme coins have made headlines in the past few weeks as investors anticipate a new meme season. Last week, the biggest mover in the crypto industry was Pepe, a token that seeks to become a leading player in the industry. At its peak, the token had created many millionaires who made money by just depositing hundreds of dollars. The challenge was that its low liquidity made it almost impossible to cash out.
Like other meme coins, Pepe does not have any utility. Instead, its value comes from the trust of the community members. The current sell-off of Pepe is mostly because the token failed competition for OKX listing. As I wrote here, OKX decided to list ArbDoge AI and Bone instead.
Historically, crypto tokens tend to jump in their early days and then plunge as the momentum fades. We saw this earlier this year when Bonk price jumped sharply only for it to decline sharply thereafter. The same happened with other meme coins like Dogelon Mars, Saudi Shiba Inu, and even Tamadoge.
Therefore, I believe that Pepe will find it difficult to regain its momentum in the long term since it lacks any utility.
Read more: How to buy Shiba Inu.
Floki Inu price recoils
Floki Inu price surged on Monday as the volume traded jumped after Binance US listed it. In most cases, cryptocurrencies tend to jump sharply after major exchanges list them. This happens because of the perceived demand rises.
In fact, the volume of Floki Inu jumped in most exchanges. In KuCoin and OKB, it was the second most traded token in KuCoin after Bitcoin and Ethereum. It also has more volume than other large meme coins like Dogecoin and Shiba Inu.
The current decline is mostly because of profit-taking as many previous holders exit their positions. On-chain data shows that many of these holders have started dumping their trades for a profit.
Historically, cryptocurrencies that jump after an exchange listing tends to be short-lived. Therefore, I suspect that Floki price will continue falling as many investors and traders start taking profits. If this happens, the token will likely drop to $0.000030.
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