Since the inception of Dogecoin in 2013, memecoins have been a part of the cryptocurrency space. However, a new token called Pepe (PEPE) has grabbed a significant share of the market from plucky investors.
Pepe Token Rally
PEPE saw a 2,000% boom in value following its launch in late April 2023, primarily attributed to zealous memecoin hype. The Pepe website itself states that it is “completely useless and for entertainment purposes only” and has no intrinsic value or expectation of financial return.
Data Analytics and Key Takeaways
According to data analytics firm Nansen, the total memecoin market value is around $20 billion, with the top five tokens, Dogecoin (DOGE), Shiba Inu (SHIB), PEPE, Baby Doge Coin (BABYDOGE), and Floki (FLOKI) accounting for over $18 billion of the value. The data shows the massive spike in token value and market capitalization of PEPE in relation to the other top five memecoins. However, the data for PEPE reflects its listing on CoinGecko, which came a couple of weeks after its inception.
Social Aspect and Smart Money Holders
The social aspect of memecoins remains a significant driver of investor sentiment and action, highlighted by the likes of Elon Musk’s infamous Dogecoin touts and rampant Twitter bots driving memecoin hashtags to relevance on Twitter. The rise of PEPE has attracted a significant number of smart money holders, as per on-chain data highlighted by Nansen. Nonetheless, the inherent risk of memecoins often leads to liquidity crunches, where major tokenholders dump their holdings, leaving smaller investors reeling from losses.
A number of cryptocurrency exchanges listed PEPE in the wake of its launch and subsequent investor appeal, including the likes of OKX, MEXC Global, Bitget, Gate.io, and Huobi.
The rise of PEPE has caused a stir in the memecoin market, attracting both small and smart money investors. The social aspect of memecoins and events like 4/20, known as DOGE day, can affect the prices of tokens. However, the inherent risk of memecoins often leads to liquidity crunches, leaving smaller investors reeling from losses.