Pepe Coin Surges 31% After Massive $5.5M Burn

• Pepe Coin (PEPE) surged by 30% due to a $5.5 million token burn.
• 6.9 trillion PEPE tokens were permanently destroyed, reducing circulation by 1.6%.
• Pepe’s price reached a two-month high amid the burn, reassuring the community.

Pepe Coin (PEPE) bucked the broader market slump on Tuesday, rising over 30% following a massive token burn worth $5.5 million.

The Pepe team permanently destroyed 6.9 trillion tokens by sending them to an unretrievable address known as “burning.” This reduced circulation by 1.6%, lowering potential selling pressure.

Pepe Coin price shot up by 30%

Pepe’s price shot up to a two-month high amid the burn as traders welcomed the team’s efforts to rein in token supply following community distrust. Pepe’s official social media account said a new advisory team was brought on to guide the project forward.

The burn helped offset concerns after developers allegedly stole tokens from Pepe’s multi-signature wallet recently. Just 3.79 trillion PEPE now remain with the original team, worth only $3.72 million given spiking trading volumes.

The meme token’s rally coincided with Bitcoin breaching $35,000 for the first time since June 2022. The leading cryptocurrency has soared on optimism around a potential spot Bitcoin ETF approval.

However, Pepe’s ability to swim against the market tide and post outsized gains reflects investor enthusiasm for the supply reduction. By slashing token holdings, developers hope to restore trust and kickstart a new trend.

Pepe led to astronomical gains before crashing dramatically in 2023. But loyal buyers have returned on signs the team is addressing past excess supply concerns. Still, regulatory risks remain for the unregistered token.