Step aside, Dogecoin and Shiba Inu, there’s a new memecoin in town—Pepecoin. This fresh crypto contender is riding the meme wave, gaining rapid popularity faster than Shiba Inu did in its infancy, largely thanks to prominent exchange listings. However, it’s had a rollercoaster ride since its launch on April 14, with its market valuation plummeting by 65% in a week after reaching a record high of $1.54 billion. This dramatic fluctuation is likely due to profit-taking after its meteoric rise.
Pepecoin’s appeal lies in its meme-inspired nature, much like its peers Dogecoin and Shiba Inu. The coin is inspired by the “Pepe the Frog” meme, which took social media by storm in the mid-2010s, even catching the attention of pop superstars like Katy Perry and Nicki Minaj. Pepecoin has cleverly capitalized on the meme’s popularity, deploying a coordinated campaign to stimulate early adoption. Headlines about early investors turning thousands into millions in a week have only added fuel to the fire, pushing the number of PEPE holders to over 105,000 in just a month.
However, much like Dogecoin, Pepecoin doesn’t yet offer a concrete use case for the average person. Its value currently lies more in its meme status and the buzz it’s generating than any practical utility. But this hasn’t dampened enthusiasm for the coin, with its market cap already reaching 5% of Dogecoin’s and 10% of Shiba Inu’s. Experts suggest it could even surpass both, if only temporarily, now that it’s gained legitimacy.
A key driver of Pepecoin’s explosive growth has been the speed at which it’s been listed on major exchanges like Binance. This has not only made it easier for retail speculators to get involved, but also enabled large capital providers to offer off-chain market-making services. The launch of Pepecoin has even coincided with a surge in daily active users on Uniswap, many of whom are trading memecoins, furthering the memecoin trend.
While Pepecoin’s meteoric rise has been exciting, investors should proceed with caution. Its price trajectory bears resemblance to Dogecoin’s 2021 bull run, which was followed by a steep 90% decline. As such, Pepecoin’s price could see further correction in the short term. Remember, all investments come with risks, so it’s essential to do your own research before jumping on the memecoin bandwagon.