• A Santiment report compared the liquidity and trading metrics for pepecoin (PEPE) against shiba inu (SHIB) and dogecoin (DOGE).
• PEPE’s trading volume was significantly lower than DOGE and SHIB, leaving room for growth.
• Retail participation in PEPE appears nearly nonexistent, resulting in “dwindling volumes” for meme coins.
Absence of Retail Investors Could Stand in the Way of Pepecoin’s Rise to Top Meme Coin: Santiment
A new report by on-chain analytics firm Santiment suggests that pepecoin (PEPE) could face challenges amid a generally bleak trading environment. The report compared the liquidity and trading metrics for pepecoin with shiba inu (SHIB) and dogecoin (DOGE), two tokens themed after the popular Shiba Inu dog breed 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.
Retail Traders Absent from Pepecoins Rise
Retail traders were mostly absent from Pepecoins’ 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. This is due to key market makers scaling back crypto trading plans amidst bearish market conditions leading to lower liquidity overall. This leaves room for potential future growth when market conditions improve.
Santiment noted that since retail participation appears nearly nonexistent, this has resulted in “dwindling volumes” for meme coins including PEPE which could stand in its way as it attempts to reach top meme coin status.
The absence of retail investors is likely to have an effect on the price movements of PEPE, impacting its ability to reach top meme coin status. Until we see an increase in retail activity or overall improvement in cryptocurrency markets, it will be difficult for PEPE to take off like other meme coins before it have done so far this year.
Pepecoin could face challenges amid a generally bleak trading environment due to lack of retail investor activity, according to Santiment’s report comparing its liquidity with other top meme coins including SHIB and DOGE. However, this opens up potential future growth when overall market conditions improve but until then, it may be tough for PEPE to reach top meme coin status like others have done this year so far