PEPE recorded a net exchange outflow of 4.54 trillion tokens in a single day, which was the meme coin’s largest daily outflow from exchanges since November 14, 2024.

Fewer tokens on exchanges mean less immediate selling pressure.

Exchange Exodus

According to the latest findings by Santiment, PEPE has traded mostly sideways over the past two months. Recent market commentary has focused on meme coin rotation, weak funding, and support level testing instead of any major project-specific catalyst.

The analytics firm explained that when a relatively quiet meme coin sees tokens leave exchanges while trader interest remains muted, bullish holders may view it as supply moving into stronger hands before attention returns.

Additionally, PEPE continues to rank among Ethereum’s largest meme coins by holder count, according to data cited by BSCN. 571,613 wallet addresses currently hold the token. It trails just behind Shiba Inu, which happens to be the largest meme coin on Ethereum by holder count. In fact, SHIB is held by 1,678,653 unique wallet addresses.

Institutional interest has also emerged. Canary Capital filed a Form S-1 with the US Securities and Exchange Commission to launch a spot ETF linked to the asset in April. The proposed fund, called the Canary PEPE ETF, would track the token’s live market price. The filing stated,

“PEPE has no identified blockchain-based utility beyond its branding and association with meme culture, and its market value is primarily driven by cultural relevance and online community sentiment. There is no assurance that interest in or demand for PEPE will continue to grow or be sustained.”

Some market watchers see more upside ahead. Crypto analyst Rafaela Rigo, for instance, projected that the asset could deliver a 3x to 5x return in the next bull cycle. The trader marked a target near $0.0000143, which represents a gain of about 400% from the current level of $0.0000028.

Liquidity Trap

Meme coins, meanwhile, continue to divide opinion across the crypto market. Last month, veteran crypto trader Ogle warned that these assets with limited liquidity can unravel within minutes if just a handful of large holders decide to sell.

Citing the recent price action in CASHCAT, Ogle said many traders often mistake unrealized gains for locked-in profits. He added that thin liquidity, concentrated ownership, and leveraged trading can quickly turn sharp rallies into steep declines, particularly after perpetual futures listings amplify volatility and trigger liquidations.

Source: CryptoPotato