In a recent report by Santiment, a notable on-chain analytics firm, concerns were raised about the potential difficulties that Pepecoin (PEPE) might encounter given the largely unfavorable trading environment. Pepecoin, a cryptocurrency not initially developed to possess inherent value or functional utility, is facing turbulent waters.
Lesser Retail Participation in Pepecoin Is Expected
Unsurprisingly, retail traders did not propel Pepecoin’s remarkable ascend to a $1.5 billion market capitalization within a few weeks. Retail trader involvement remained relatively marginal despite the token accumulating billions in daily trading volumes and prompting a slew of imitation tokens. This observation has been outlined in Santiment’s comprehensive report.
The analytics firm positioned Pepecoin’s liquidity and trading metrics in contrast to Shiba Inu (SHIB) and Dogecoin (DOGE), cryptocurrencies modeled after the famed Shiba Inu dog breed. At their zenith, these tokens amassed an impressive combined value of $160 billion.
Contrarily, Pepecoin’s trading volumes, while reaching an impressive $2 billion, were substantially lower when compared to Dogecoin and Shiba Inu’s peak trading volumes of $70 billion and $40 billion, respectively.
Pepecoin Has Pump-and-dump Potential
One crucial aspect to consider is Pepecoin’s achievement in churning these volumes amidst a bear market. This period, characterized by lower liquidity, saw many key market players retract their crypto trading strategies. Consequently, this presents an opportunity for future expansion when overall market conditions improve.
Santiment’s report highlighted this potential: “Despite PEPE’s trading volume being significantly lesser, it leaves room for untapped growth potential.” However, it also underscored that liquidity and retail participation in PEPE’s market is significantly less than what DOGE and SHIB experienced during their boom periods.
The Shift in Retail Participation and the Consequent Impact
The landscape of retail participation has shifted considerably, with participation appearing almost non-existent. This shift has led to dwindling volumes for meme coin projects amongst retail traders outside of Crypto Twitter. Who knew meme coins were merely a circle jerk among select individuals?
Santiment said, “While conversations continue, the interest and investment from retail traders appear to have significantly diminished.”
Social Media Engagement: Pepecoin Standing its Ground
Contrasting the trading volume and liquidity, Pepecoin’s social volume within crypto media stands toe-to-toe with DOGE and SHIB during their heyday. The term’ social volume’ refers to engagement on social media platforms. It is gauged through the number of posts or tweets, potentially indicating the number of individuals actively discussing a specific token.
Despite the currently unfavorable market conditions and lesser retail participation, Pepecoin believers maintain an optimistic outlook on the token’s performance in the future. That may be a sign of delusion, but time will tell.
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