Summary:
- A new report by on-chain analytics firm Santiment suggests that Pepecoin (PEPE) could face challenges amid a generally bleak trading environment.
- Santiment compared the liquidity and trading metrics for pepecoin against shiba inu (SHIB) and dogecoin (DOGE).
- The report noted that retail traders were mostly absent from pepecoin’s rise to a $1.5 billion market cap in a few weeks.
Report Findings:
A new report by on-chain analytics firm Santiment comparing the liquidity and trading metrics for pepecoin (PEPE) against shiba inu (SHIB) and dogecoin (DOGE) suggests PEPE could face challenges amid a generally bleak trading environment. The report said that while dogecoin and shiba inu hit trading volumes of $70 billion and $40 billion respectively at peak, pepecoin managed a comparatively lesser $2 billion.
The report noted that retail traders were mostly absent from Pepecoin’s stellar rise to $1.5 billion market cap in a few weeks, even as the token snagged billions of dollars in daily volumes and a host of copycats. It suggested this was due to key market makers scaling back crypto trading plans, resulting in “dwindling volumes” for meme coins.
Analysis:
The absence of retail investors could stand in the way of pepecoin’s rise to top meme coin status if it is unable to generate enough interest from buyers amid such an unfavorable market environment. To date, much of its gains have been driven by speculation rather than actual underlying value or use cases, which is why its current position may be precarious unless it can find more buyers willing to get involved with it over time.
Conclusion:
PepeCoin’s future growth prospects will largely depend on its ability to attract more buyers into its ecosystem despite current bearish market conditions. While some may view its current low trading volume as an indication that it may not be able to survive long-term, others may see it as an opportunity for growth once broader market sentiment becomes more favorable again. Ultimately, only time will tell whether PepeCoin has what it takes to become the next big meme coin or fade away quietly into obscurity like so many other tokens before it.
Takeaways:
- Retail Traders Absent From PepeCoin Rise : Retail traders were mostly absent from PepeCoin’s stellar rise to $1.5 billion market cap in a few weeks.
- Low Liquidity & Trading Volume : While dogecoin and shiba inu hit trading volumes of $70 billion and $40 billion respectively at peak, pepecoin managed only about $2 billion.
- Future Growth Prospects Depend On Buyer Interest : PepeCoin’s future growth prospects will largely depend on its ability to attract more buyers into its ecosystem despite current bearish market conditions.