The memecoin market is experiencing another season of excitement as the frog-themed Pepe (PEPE) surprised everyone. This memecoin reached a market cap of $1.5 billion just three weeks after its debut. The token officially launched on April 14, 2023, and reached a market capitalization of over $1 billion in this short period of time. The PEPE memecoin broke the $0.000004 mark on May 5, according to CoinMarketCap.
Interestingly, the core value proposition of PEPE is that there isn’t one. The official cryptocurrency website includes a disclaimer stating that PEPE is a meme coin with no intrinsic value. Therefore, according to the website, no one should have an expectation of financial return. Moreover, the website announced that there will be no formal team or roadmap, and the token serves only for entertainment purposes.
Currently, Pepe appears to be following an unusual trajectory. While memecoins often skyrocket in a short period of time, the case of PEPE is different from that of Dogecoin and Shiba Inu. This is because these two spent years in the market before reaching such a market capitalization.
Dogecoin’s Hype, Rise, And Fall
In 2021, DOGE experienced a surge of over 23,000%. This was largely due to billionaire Elon Musk’s vocal support for the cryptocurrency on Twitter. Similarly, SHIB soared by over 1,250% during the 2021 crypto bull market. The latter used Dogecoin as a springboard for its popularity.
These two memecoins made millionaires overnight and were being religiously supported on Twitter. However, they were also notorious for their extreme volatility and major swings in value. Today, both of these tokens are trading for a price 80%-90% below their all-time high.
A closer examination of Pepe’s on-chain activity reveals some concerning trades. Data from blockchain analytics service Lookonchain shows that five addresses allegedly linked to the Pepe team made a $1.23 million profit in a thin liquid market. These addresses purchased 8.87 trillion PEPE at a low price and sold over 90% of their holdings on Uniswap for a gain. This means that most of the tokens the team allegedly bought are now out of their hands.
It is important to note that some of the top PEPE holders right now are centralized exchanges. However, analyst “008.eth” observed that non-exchange PEPE whales have reduced positions recently, suggesting profit-taking that coincided with a price correction on May 3.
Shiba Inu, Dogecoin, Pepe Memecoin Comparison
In comparison, Shiba Inu took over two years to reach a market cap of $1 billion. Additionally, it took Dogecoin over seven years to achieve a market cap of more than $1 billion. The recent surge in PEPE’s market cap is uncommon, especially for memecoins, as the broader crypto market is currently in recovery.
As the memecoin season unfolds, investors should exercise caution when considering investments in these highly volatile tokens. The meteoric rise of Pepe Coin serves as a reminder of the unpredictability of the memecoin market.
While the growth of Pepe is undoubtedly impressive, its future remains uncertain. Memecoins often experience rapid price increases followed by sharp declines. PEPE’s current trajectory could be no exception. Investors should keep a close eye on the market and always do their own research.
The memecoin market’s resurgence highlights the continued fascination with such tokens. The community hypes these projects up despite their inherent risks and lack of fundamentals. As the market evolves, it remains to be seen whether Pepe and other memecoins can maintain their momentum or whether they will fade away as quickly as they rose to prominence. In either case, the memecoin season is a testament to the unpredictable and exciting nature of the cryptocurrency market.