The PEPE token is back in the spotlight—and this time, it’s not just for laughs. Once dismissed as a novelty meme coin riding on internet culture, PEPE has reemerged with surprising momentum, capturing the attention of traders and analysts alike. In a dramatic turn of events, PEPE recently outpaced Dogecoin in spot trading volume, hitting nearly **$4 billion** in daily trades—surpassing DOGE’s $2.84 billion by over $1.1 billion.
This surge wasn’t just a flash in the pan. A 16% price jump coincided with the completion of a Cup & Handle chart pattern, a bullish technical formation that often signals strong upward momentum. The breakout reignited market confidence and drew in speculators eager to capitalize on renewed momentum.
Among top trading coins, $PEPE ranked No.5 in terms of trading volume, marking $3.9 billion today. We are back.
— M Barbara (@Barbara_KVH), May 9
Meme Coin Trading Volumes Surge
The broader meme coin ecosystem is experiencing a resurgence in activity, but PEPE is leading the charge. According to on-chain data, PEPE’s derivatives trading volume spiked to $5.74 billion—a staggering 280% increase from the previous day. This explosive growth highlights growing institutional and retail interest in high-risk, high-reward assets amid improving market sentiment.
While Dogecoin still dominates the futures market with $6.60 billion in open interest** and a healthy funding rate—the highest since February—its dominance is being challenged. Notably, short positions on both coins faced heavy liquidations: **PEPE shorts lost around $17 million, slightly more than DOGE’s $14 million in forced exits.
This shift suggests that traders are increasingly viewing PEPE not just as a joke token, but as a legitimate contender in the volatile meme economy.
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Whale Activity Signals Strong Institutional Interest
One of the most telling signs of PEPE’s rising credibility comes from on-chain whale movements. According to analytics firm LookOnChain, a single large wallet recently acquired **500 billion PEPE tokens worth $4.36 million**—just days after purchasing another 500 billion for $4.54 million.
This whale just bought 500B $PEPE ($4.36M) again and currently holds 2T $PEPE ($17.42M).
— Lookonchain (@lookonchain), May 8
As of now, this address controls approximately 1.5 trillion PEPE tokens, valued at over **$18.6 million** at current prices (~$0.0000123 per token). Such concentrated holdings can significantly influence price action—either through sustained accumulation or sudden sell-offs.
While whale buying often fuels optimism, it also raises concerns about market centralization and potential volatility if large holders decide to exit their positions.
Mixed On-Chain Signals: Strength vs. Sustainability
Despite bullish price action and whale accumulation, deeper metrics tell a more nuanced story.
The Chaikin Money Flow (CMF) for the PEPE/USDT pair turned positive on May 6, indicating fresh capital inflows—possibly driven by easing geopolitical tensions and improved risk appetite. However, network growth remains stagnant. Fewer new wallets are joining the ecosystem, suggesting that the rally may be driven more by existing large traders rotating capital rather than organic user adoption.
In other words: the party might be loud, but there aren’t many new guests.
Supply Overhang: A Double-Edged Sword
PEPE’s total supply stands at a massive 420 trillion tokens—one of the largest circulating supplies among major cryptocurrencies. While this abundance contributes to its meme-friendly accessibility, it also creates a structural challenge.
Large supplies require enormous and sustained demand to maintain or increase value. Even a small percentage of supply hitting exchanges could trigger sharp sell-offs. Unlike scarcity-driven assets like Bitcoin, PEPE relies heavily on sentiment and hype to sustain gains.
That said, PEPE has already surged over 112% this month, proving that momentum can overcome fundamentals—at least in the short term.
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Bitcoin’s Rally Fuels Retail Speculation
A key catalyst behind the broader altcoin revival is Bitcoin’s climb past $104,000. Historically, when BTC breaks into new psychological territory, it tends to draw retail investors back into the market. Once confidence returns, many traders rotate into smaller-cap, high-volatility assets like meme coins.
If Bitcoin maintains its strength, PEPE could benefit from spillover demand. But if BTC stalls or corrects sharply, meme coins like PEPE are likely to be among the first sold off—a classic “risk-off” scenario.
What Investors Should Watch
Meme coins are inherently speculative, and PEPE is no exception. While today’s headlines are positive, long-term investors should monitor several key indicators:
- Open Interest Trends: Rising open interest in futures markets often precedes sustained price moves.
- New Wallet Growth: True adoption requires new users, not just whales.
- Bitcoin Correlation: Watch BTC’s trajectory closely—its health often dictates altcoin fortunes.
- Breakout Validation: If PEPE holds above its Cup & Handle breakout level (~$0.000012), further upside becomes more likely.
Without these supporting factors, today’s surge may remain just another spike in an otherwise choppy chart.
Frequently Asked Questions (FAQ)
Q: Why is PEPE outperforming Dogecoin in trading volume?
A: PEPE's recent technical breakout, combined with aggressive whale accumulation and higher derivatives activity, has attracted short-term traders looking for momentum plays. While DOGE has stronger fundamentals and brand recognition, PEPE’s lower price point and viral appeal make it attractive during speculative rallies.
Q: Is PEPE a good long-term investment?
A: PEPE lacks utility and has an enormous supply, making it highly speculative. It may offer short-term gains during bull runs but carries significant risk over the long term due to its dependency on hype rather than real-world use cases.
Q: How does whale activity affect PEPE’s price?
A: Large purchases can create upward pressure and signal confidence, driving FOMO among retail traders. However, if whales suddenly sell, it can trigger rapid declines due to low liquidity relative to supply.
Q: Can PEPE sustain a $4 billion daily trading volume?
A: Sustaining such volume depends on continued market enthusiasm and broader crypto market conditions. Historical patterns suggest these spikes are often temporary unless accompanied by real adoption or ecosystem development.
Q: What technical pattern triggered PEPE’s latest rally?
A: The completion of a Cup & Handle pattern—a bullish continuation pattern—signaled renewed buying momentum after a consolidation phase. Traders interpret this as a potential launchpad for further gains if support holds.
Q: Should I invest in PEPE now?
A: Only if you understand the risks and are comfortable with high volatility. Always diversify and never invest more than you can afford to lose. Consider using stop-loss orders to manage downside risk.
With momentum on its side and whales placing big bets, PEPE has reasserted itself as a dominant force in the meme coin space. Whether this resurgence marks the beginning of a lasting trend or just another fleeting moment of viral fame remains to be seen.
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