Can Pepecoin Surpass Memecoins Like Dogecoin & Shiba Inu in Flip Potential?
Pepecoin is a new cryptocurrency that mimics the features of memecoins based on popular internet memes, with the most well-known being Dogecoin. Pepecoin is based on the pop culture icon of “Pepe the Frog” meme which has gained popularity on Twitter and has reaped over $60 million in sales on the OpenSea auction platform. Pepecoin’s market valuation has dropped 65% after reaching a record high of $1.54 billion, with profit-taking cited as the primary reason for the extreme price correction. Although it has gained popularity, Pepecoin remains without real use-case for the average person. Pepecoin currently only accounts for five percent of Dogecoin’s market cap and 10% of Shiba Inu’s market cap. However, a researcher at Messari predicts that Pepecoin may surpass both coins at some point, with rapid rise in valuation due to its immediate listing across popular centralized crypto exchanges like Binance. Although Chase Devens notes that these integrations lower barriers for retail speculation, they also enable large capital providers to provide off-chain market making services. Uniswap’s daily active users have risen alongside the launch of Pepecoin, but caution is advised as Pepecoin’s excitement and growth may show similarities with the final phase of the 2021 memecoin bull run. This is demonstrated by Pepecoin’s ongoing correction, which looks similar to Dogecoin’s 90% decline from its record high of $0.75 in May 2021. Pepecoin’s price may extend its ongoing correction in the short term towards $0.00000083 or 35% below the current pricing level. A significant correction to $0.00000035 could occur in the future, which served as resistance in April 2023.