PEPE Coin: Is 2025 the Year of Meme Season 2.0?

The meme coin market has long been a volatile yet culturally resonant segment of the cryptocurrency ecosystem. In 2025, Pepe (PEPE) has emerged as a focal point of speculation, with its price dynamics increasingly influenced by whale activity and shifting market sentiment. As investors weigh whether this year could mirror the explosive "meme seasons" of 2021 (Dogecoin) and 2022 (Shiba Inu), on-chain data and historical patterns offer critical insights into PEPE's trajectory.

Whale Activity: Accumulation Amid Turbulence

Whale behavior in 2025 has been a double-edged sword for PEPE. On one hand, large holders have demonstrated a clear preference for accumulation. For instance, the top 100 Ethereum-based PEPE addresses increased their holdings by 4.28% over 30 days in October 2025, signaling strategic long-term positioning, according to a LeVex analysis. This trend is reinforced by a 650 billion-token accumulation by whales in August 2025, as reported by an Elevenews report, which suggests confidence in the token's medium-term prospects despite short-term volatility.

However, recent weeks have seen bearish signals. Whale selling in October 2025 triggered a 5% price drop, with holdings declining by 0.5% in a single week, according to CoinDesk. This selling pressure coincided with broader market turmoil, including a 31.94% seven-day decline for PEPE amid a crypto market correction tied to geopolitical tensions, as covered in an NFTBirdies article. Yet, even during these dips, accumulation persisted. For example, a wallet withdrew 280 billion PEPE tokens from Binance in August 2025 during a price slump, a move interpreted as opportunistic buying, as noted by LeVex.

The mixed signals highlight a tug-of-war between profit-taking and long-term conviction. While some whales have shifted capital to newer projects like Based Eggman (GGs), others remain bullish, with on-chain data showing a 20% rise in whale holdings during May 2025's price weakness, LeVex data shows.

Historical Parallels: Meme Seasons 1.0 vs. 2.0

To assess whether 2025 mirrors prior bullish cycles, it's instructive to compare PEPE's on-chain metrics to those of Dogecoin (2021) and Shiba Inu (2022). During Dogecoin's 2021 surge, active addresses spiked to 27,500, and whale outflows to private wallets signaled accumulation, Elevenews reported. Similarly, Shiba Inu's 2022 rally was marked by a 32.8% increase in large transaction volume and a 640.7% rise in burn rate, Elevenews noted.

PEPE's 2025 trajectory shows both similarities and divergences. While daily active addresses have plummeted to fewer than 3,000 in October 2025, LeVex data indicates, new address growth accelerated by 39.01% in July 2025, reflecting renewed retail interest, according to an AMBCrypto article. Trading volume also mirrors historical patterns: derivatives activity surged 60% to $3.67 billion in July 2025, a metric often preceding price rallies, AMBCrypto observed.

Yet, PEPE's ecosystem lacks the utility-driven infrastructure seen in later meme coins. Unlike Shiba Inu's Shibarium or Dogecoin's expanding use cases, PEPE remains largely a cultural icon, which may limit its appeal to institutional investors, a point highlighted by NFTBirdies. This gap has drawn capital to projects like Layer Brett (LBRETT), which combines meme culture with blockchain utility, NFTBirdies adds.

Market Sentiment: Social Media's Double-Edged Sword

Social media remains PEPE's lifeblood. Twitter and Reddit campaigns like #PEPEArmy have sustained engagement, but the token's reliance on viral trends has grown riskier. For example, Elon Musk's Pepe-themed profile changes historically drove sharp price spikes, yet their impact has waned in 2025, suggesting market saturation, LeVex notes.

Community sentiment is similarly split. While long-term holders advocate for HODLing, a 25% price drop in October 2025 prompted many to pivot to higher-ROI alternatives, NFTBirdies reported. This shift is evident in exchange reserves: PEPE's exchange-held supply fell from 45% in late 2024 to 26.6% in mid-2025, a sign of self-custody and long-term confidence, NFTBirdies observed. However, the broader market's focus on utility-driven projects underscores PEPE's vulnerability to competition.

Strategic Entry Points and Risks

For investors considering PEPE, key support levels like $0.00000577 and $0.0000040 are critical, AMBCrypto reports. Whale accumulation during dips-such as the August 2025 280 billion-token withdrawal-suggests these levels could act as buying opportunities. However, risks persist: declining open interest ($535 million in September 2025) and waning retail enthusiasm (active addresses at 3,000) indicate a fragile bullish case, LeVex warns.

A potential catalyst for a rally could come from renewed social media momentum or broader market recovery. If Bitcoin rebounds, meme coins like PEPE often follow, as seen in 2021 and 2022, AMBCrypto observed. Yet, without structural improvements to its utility, PEPE may struggle to outperform newer rivals.

Conclusion

2025's "Meme Season 2.0" narrative for PEPE hinges on balancing whale-driven accumulation with deteriorating market sentiment. While on-chain data reveals strategic buying by large holders and historical parallels to past meme cycles, the token's lack of utility and competition from utility-focused alternatives pose significant headwinds. Investors should monitor whale activity and key support levels but remain cautious about overexposure in a market increasingly favoring innovation over nostalgia.