• The Santiment report shows that Pepecoin (PEPE) could face difficulty reaching the same level of success as other popular meme coins, due to a lack of retail traders.
• Despite low trading volumes, Pepecoin has maintained an impressive amount of social media engagement, indicating potential for growth when market conditions improve.
• Retail trading participation in meme coin projects has dwindled, making it difficult for these tokens to achieve the same level of success as before.
Pepecoin’s Potential Challenges
A new report by on-chain analytics firm Santiment suggests that pepecoin (PEPE) could face challenges amid a generally bleak trading environment. This comes despite the token snagging billions of dollars in daily volumes and becoming one of the top meme coins in just a few weeks.
Retail Investor Absence
Santiment compared the liquidity and trading metrics for pepecoin against shiba inu (SHIB) and dogecoin (DOGE), two tokens themed after the popular Shiba Inu dog breed that was once worth a cumulative $160 billion at peak. While dogecoin and shiba inu hit trading volumes of $70 billion and $40 billion respectively at peak, pepecoin managed a comparatively lesser $2 billion. A key factor here is that pepecoin raked up such volumes in the midst of a bear market – one that’s marred with generally lower liquidity as key market makers scaled back crypto trading plans. This opens up potential for growth when overall market conditions are better.
Retail Trading Dwindling
However, retail traders were mostly absent from Pepecoin’s rise to $1.5 billion market cap, reducing liquidity and leaving room for future growth but also meaning “retail participation appearing nearly nonexistent” according to Santiment’s report. Such a scenario has resulted in “dwindling volumes” for meme coin projects among retail traders – ones who exist outside Crypto Twitter – which may not accurately represent token popularity or impact in the real world.
Social Media Engagement
Santiment noted that despite differences in trading volume and liquidity, PEPE’s social volume within crypto media is on par with DOGE and SHIB during their peak periods, indicating potential adoption even if there is limited retail investment currently available. Social volume is measured by participation on social media sites such as tweets or posts which can help indicate how many people are interested or involved with any particular project or token at any given time.
In conclusion, while Pepecoin has seen some success since its launch this year, it has yet to reach the heights achieved by dogecoin or shiba-inu due to lack of retail investors and dwindling retail trading participation among meme coin projects more broadly . However ,it seems there is still plenty of promise for Pepecoin if overall conditions improve ,due to its impressive levels of social media engagement suggesting potential adoption even without significant investments from retail traders currently available .