Ethereum News Today: Investors Flee PEPE as Meme Coin Volatility Drives Capital to DeFi Alternatives

PEPE, the second-largest Ethereum-based meme coin by market capitalization, is facing renewed bearish pressure following a recent 20% price correction, according to multiple on-chain and market activity indicators. The token is currently trading near the lower boundary of a symmetrical triangle pattern, with analysts warning that a breakdown below the $0.0000095 level could trigger further downside toward $0.0000085–$0.0000080 [3]. This development comes amid a broader decline in market participation, with active addresses for PEPE dropping below 5,000 in recent months, marking a significant shift from November 2024 when daily activity peaked at nearly 27,500 [3].

Recent liquidation data underscores the growing bearish sentiment. Over $326,000 in long positions were liquidated, compared to just $9,900 in short positions, indicating strong dominance by sellers in the market [3]. OKX led the liquidation figures with $288,300 in losses from longs, while other exchanges like HTX and Gate recorded smaller but similar trends [3]. This imbalance suggests that traders who had positioned for higher prices are increasingly being forced out of their positions, adding downward pressure on the token.

The latest major sell-off was triggered by a whale dumping 500 billion PEPE tokens—worth approximately $4.8 million—into Binance, which briefly pulled the price under $0.0000094 [4]. Despite this, PEPE has shown relative resilience compared to other meme coins, outperforming a broader market that fell nearly 3% in the same period. The whale’s move, however, is not an isolated event; it reflects a broader pattern of volatility and speculative trading in the meme coin space. Over the past month, whale holdings on Ethereum have increased by 1.46%, indicating some cautious accumulation [4].

Market fundamentals continue to deteriorate. Trading volume has declined by 15%, now at $980 million, and open interest is down 4% to $535 million [3]. These metrics suggest reduced participation and a lack of conviction among market participants, both of which are typically precursors to larger price movements. On-chain metrics corroborate this trend: smart money holdings have dropped by 23% in the last 30 days, while whale activity remains relatively flat [1]. Nansen data also shows that large investors are no longer buying, a sign that the market may be entering a consolidation or bearish phase.

Amid the uncertainty surrounding PEPE, traders are increasingly shifting capital toward alternative projects with more tangible utility. Layer Brett and Mutuum Finance (MUTM) have emerged as two of the most prominent alternatives, offering DeFi staking, lending protocols, and Ethereum Layer 2 efficiency. Layer Brett, for instance, has attracted $2.2 million in presale funding and is offering staking APYs as high as 1,190% [1]. Meanwhile, MUTM has raised over $15.1 million in presale funding, with a current token price of $0.035 and a projected 1,800% gain in the next cycle [2]. These developments highlight a growing appetite among investors for projects with real-world utility and less exposure to the volatile nature of meme coins.

Source:

[1] Pepe Coin Holders Panic Sell, But Where Are They ... (https://www.digitaljournal.com/pr/news/binary-news-network/pepe-coin-holders-panic-sell-1403883748.html)

[2] PEPE's $7M liquidation drives traders to MUTM at $0.035 ... (https://invezz.com/news/2025/09/01/pepes-7m-liquidation-drives-traders-to-mutm-at-0-035-for-1800-gain/)

[3] PEPE May Crash Another 20% if This Support Breaks (https://cryptopotato.com/pepe-may-crash-another-20-if-this-support-breaks/)

[4] PEPE price outlook: $4.8M dump tests support, resistance ... (https://coinjournal.net/news/pepe-price-outlook-4-8m-dump-tests-support-resistance-near-0-00001-in-focus/)