The meteoric rise of Pepecoin (PEPE) to a $1.5 billion market cap within just a few weeks has been accompanied by billions of dollars in daily volumes and numerous imitators. However, a recent report from on-chain analytics firm Santiment revealed that retail traders were largely missing from this impressive ascent, resulting in lower trading volumes compared to other tokens like Shiba Inu (SHIB) and Dogecoin (DOGE), which reached peak trading volumes of $70 billion and $40 billion, respectively.
Pepecoin only managed a significantly lower $2 billion in daily trading volume, but Santiment points out that this was achieved during a bear market and is therefore indicative of untapped potential for the token. The firm noted that when market conditions improve, Pepecoin’s lower trading volume, liquidity, and retail participation compared to DOGE and SHIB leave ample room for growth.
Nevertheless, the report also stressed that the retail landscape has changed dramatically, with retail participation appearing nearly non-existent for PEPE coin projects—likely due to conversations taking place outside of Crypto Twitter, which may not represent the token’s true popularity or impact in the real world.
Even though trading volumes and liquidity are different, Santiment found that PEPE’s social volume within the crypto media is on par with DOGE and SHIB during their peak periods. Social volume represents the number of people actively discussing a particular token on social media platforms like Twitter.
Despite the “dwindling volumes” among retail traders, steadfast supporters of Pepecoin remain optimistic about the token’s prospects in the coming years. One such holder, @AdamMetaverse, told CoinDesk that he is “not over-stressed from dips and FUD” and believes that Pepecoin will eventually give SHIB and DOGE a run for their money. He cited factors such as the token’s popularity among influential Crypto Twitter users, the widespread appeal of Pepe the Frog memes, and the rapid listing of PEPE on crypto exchanges as reasons for his bullish stance.
“I’m holding more than $1M in $PEPE and overall I’m extremely bullish,” he added.
In conclusion, while Pepecoin’s retail participation and trading volumes remain considerably lower than those of rival tokens like DOGE and SHIB, the potential for growth during more favorable market conditions cannot be ignored. However, it is also essential to consider the shifting retail landscape and the potential influence of conversations taking place beyond Crypto Twitter in assessing the token’s genuine appeal to investors.
Source: Coindesk
