How 6.9 Trillion Pepe Token Burn Aided Price
Around 7 trillion Pepe tokens, worth $6 million, were recently burnt, pushing its value up by more than 27%.
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Pepe memecoin surged in price over the last 24 hours after more than 6 trillion PEPE tokens were burnt by the new team in charge of the memecoin project.
The memecoin, which broke into the scene earlier this year and peaked on May 5, has declined since then. But the resurgence of the crypto market coupled with the decision to burn 6.9 trillion tokens worth $6 million. The tokens burnt represent 1.6% of the total supply.
According to its official account on X, there are still 3.79 trillion tokens allocated to the original team's multi-sig wallet. The team has yet to decide how to use this allocation but would likely dedicate it to development and marketing efforts.
Price Performance and Distribution
In the last 24 hours, the PEPE price has increased by 27.4% and is currently trading at $0.00000122. This continues the upward trend for the memecoin, up 96% in the past seven days.
Despite the recent rise in price, PEPE is down 72% from its all-time high in May. This highlights how much the memecoin price has declined from its peak as investors' interest moved to other cryptocurrencies.
However, the recent rise is not just because of the burn. It also coincides with BTC's rise to its highest level in 17 months. This suggests that the PEPE team likely took advantage of the optimism in the crypto market to boost sentiments about memecoin.
Meanwhile, the number of wallets holding PEPE has now surpassed 155k+ on-chain wallets, including on Arbitrum and BNB Smart Chain. This is relatively low compared to other memecoins such as SHIB and DOGE, which have millions of holders.
What the Burn Means for Pepe
The burn will likely restore the faith of several members of the PEPE community after earlier incidents involving rogue developers. In late August, 16 trillion PEPEs worth $15 million were moved to crypto exchanges in suspicious transactions.
The tokens were later sold, causing the PEPE price to fall substantially and leading to concerns that the team might be slowly rug-pulling the project.
One team member later confirmed that some developers were behind the transfers. They noted that the project has been plagued by internal conflicts among most early project developers.
With a new team of advisors now responsible for guiding the project, investors will likely have more confidence in the memecoin. The fact the supply controlled by the team is now at 3.7 trillion means that it's unlikely to have a major impact on the price if they decide to dump it.
