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- PEPE’s decline after surging 1,200% in the first week of May was predictable.
- The decline followed a trend established by older meme coins like SHIB and DOGE.
- There could be more in the tank for PEPE, considering its low market capitalization.
According to Santiment, the market intelligence platform with on-chain and social metrics, PEPE’s decline after surging 1,200% in the first week of May was predictable. It followed a trend established by older meme coins like SHIB and DOGE.
The $PEPE #FOMO was in full force during the first week of May, jumping approximately +1,200% in a week before its predictable decline. Our latest insight looks at how this #memecoin surge compared to ones of the past, and how we can learn from it. https://t.co/LusXE2urza pic.twitter.com/hsfXRu1UYp— Santiment (@santimentfeed) May 16, 2023
A Santiment analysis observed that even though PEPE had not reached the heights achieved by SHIB and DOGE, the growth pattern of the new meme coin mirrors that of its predecessors. In their heyday, SHIB reached a valuation of $40 billion, and DOGE attained a $70 billion valuation. At $2 billion, PEPE’s valuation pales in comparison to both meme coin unicorns.
Santiment’s analysis suggests there could be more in the tank for PEPE, considering its low market capitalization leaves room for more growth. On the other hand, it shows the current retail sentiment in the meme coin market.
Santiment deduces the situation as evidence of the dropping liquidity and retail participation in the meme coin market. According to the analysis, the retail landscape for meme coins may have changed dramatically, and retail participation is nearly nonexistent.
Another factor identified by Santiment to be affecting retail participation is the crash of LUNA and FTX in 2022. According to the market intelligence platform, both events profoundly impacted the market. Since then, the trading volume of meme-inspired cryptocurrencies has significantly dropped, with retailers concentrating on other projects.
PEPE may not have matched SHIB and DOGE in market valuation. However, Santiment’s on-chain analysis shows comparable social volume for the new meme coin with the others within the crypto media during their peak periods. The situation is different for mainstream media coverage. Unlike DOGE, a subject of discussion on major television channels, PEPE remains confined to social media, with most of its traffic seen on crypto Twitter.
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