The recent surge in the market sparked by Bitcoin's break above $35,000 may have encouraged traders of meme coins to take more risks. These traders usually invest in tokens that have a high social appeal rather than ones with an intrinsic use case.
Pepe (PEPE), one of the best-known meme coins of the year, has increased by up to 30% in the last day, indicating frenzied on-chain trading activity.
The well-known meme coin with a frog motif is currently up 93% over the last seven days to trade at a two-month high.
Although it may be challenging to determine the precise cause of the price increase, there are several possible explanations for PEPE's recent hike.
At the start of the week, PEPE performed a 6.9 trillion token burn, allaying worries about the team's token holdings. Currently, the team has 3.79 trillion tokens, which would not be a great deal if sold on the open market.
The decision to burn tokens was made after three Pepe team members carried out some unexpected transactions from the multisig wallet associated with the project, thereby stealing Pepe tokens worth millions of dollars.
Pepe has a new team of advisors guiding it forward, a post on the Pepe X (formerly Twitter) account stated. The team is also actively exploring potential uses for the 3.79 trillion tokens still attached to the original team CEX multisig wallet.
Meanwhile, a silent trigger might be likely for PEPE's huge price spike: big network growth. On-chain analytics firm Santiment pointed out that as traders focused on Bitcoin and Ethereum amid the bullish market resurgence, mid-caps such as PEPE are seeing big network growth rises.
According to Santiment, this group of crypto assets is seeing massive increases in the number of new addresses created daily during the market's recovery.
PEPE is noticing an increase in the number of new wallets created as prices rise. PEPE was up 20.32% in the last 24 hours to $0.00000121 at the time of writing, according to CoinMarketCap data.