Pepe Coin (PEPE), a meme-based cryptocurrency, has experienced significant volatility and a decline in value due to several factors:

1. Profit-Taking by Long-Term Holders: On-chain data indicates that long-term holders have been selling their PEPE tokens, leading to increased selling pressure and a potential 35% price drop. 

2. Security Breaches: PEPE has faced security issues, including a hack of its official Telegram channel, which has eroded investor confidence and contributed to price declines. 

3. Market Sentiment and Competition: The emergence of alternative meme coins has diverted attention and investment away from PEPE, affecting its price performance. 

These factors have collectively contributed to PEPE’s recent underperformance in the cryptocurrency market.