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Pepecoin (PEPE) experienced a rapid surge in market capitalization, reaching an impressive $1.5 billion in just a few weeks. Despite attracting billions of dollars in daily trading volumes and spawning numerous copycats, the participation of retail traders in this extraordinary rise remained notably limited.
This information stems from a recent report conducted by Santiment, an on-chain analytics firm. Santiment conducted a comparison of liquidity and trading metrics between pepecoin, shiba inu (SHIB), and dogecoin (DOGE). These tokens are themed around the beloved Shiba Inu dog breed and, at its peak, dogecoin held a combined value of $160 billion.
In terms of trading volumes, Santiment revealed that dogecoin and shiba inu reached staggering peaks of $70 billion and $40 billion respectively. However, pepecoin lagged behind with a comparatively modest trading volume of $2 billion.
An important consideration is that pepecoin accumulated these volumes during a bear market, characterized by reduced liquidity as major market players scaled back their cryptocurrency trading activities. This presents the potential for future growth when overall market conditions improve.
“Although PEPE's trading volume is significantly lower, it leaves room for growth and untapped potential,” Santiment said.
“However, it also means that the liquidity and retail participation in the market for PEPE is far less than what DOGE and SHIB experienced in previous years. In fact, it seems the retail landscape has changed dramatically, with retail participation appearing nearly nonexistent,” the report added.
This situation has led to a decrease in trading activity for meme coin projects among retail traders who are not part of Crypto Twitter. However, it's important to note that the popularity or impact of a token in the real world may not be accurately represented by Crypto Twitter.
"Conversations continue, but it appears that the interest and investment from retail traders have significantly diminished," Santiment said.
Nevertheless, Santiment highlighted that PEPE's social presence in the crypto community matches that of DOGE and SHIB at their highest points, despite variations in trading volume and liquidity.
Social volume refers to the level of engagement and participation on social media platforms, such as tweets or posts, which can serve as an indication of the number of individuals actively discussing a particular token.
Meanwhile, Pepecoin enthusiasts maintain an optimistic outlook regarding the token's potential performance in the forthcoming years.
“I'm not over-stressed from dips and FUD and hodling strong because I'm pretty sure pepe will give a fight to SHIB and DOGE and in a bull market that could pay off big time,” said one pepecoin holder @AdamMetaverse in a direct message to CoinDesk.
@AdamMetaverse highlighted several factors to support this reasoning, including the endorsement of Pepecoin by influential figures on Crypto Twitter, the widespread popularity of Pepe the Frog memes among the general public, and the swift listing of PEPE on various cryptocurrency exchanges.
“I'm holding more than $1M in $PEPE and overall I'm extremely bullish,” he added.
Source Coindesk
