Learn: What is Pepecoin and can it flip memecoins Dogecoin and Shiba Inu?
Pepecoin is a new meme-inspired cryptocurrency that's growing faster than Shiba Inu in its early days thanks to some big-name exchange listings.
Profit-taking appears to be the primary reason behind the extreme price correction, after it rallied from almost nothing to as high as $0.00000372 after its launch on April 14, while emerging as the fastest-growing ERC-20 token in the crypto market's history.
Pepecoin captures people's attention by mimicking features of memecoins, based on popular internet memes. The most well-known is Dogecoin which uses the famous Shiba Inu dog meme as its logo.
Pepecoin is based on the "Pepe The Frog" meme, created by Matt Furie in his 2005 cartoon “Boys Club.” The humanoid frog went on to become a mainstream meme in the mid-2010s, with singers Katy Perry and Nicki Minaj using it in their tweets.
Similarly, the anonymous team behind Pepecoin has leveraged the meme's current popularity on Twitter.
For instance, the number of PEPE holders has grown from negligible to over 105,000 in a month, according to CoinCarp.com.
PEPE is still only about 5% of Dogecoin's market cap of over $10 billion. It's also 10% of the second-largest memecoin Shiba Inu's with a market cap of around $5 billion.
"It wouldn’t be surprising to see PEPE surpass both at some point, if only momentarily, now that it has gained legitimacy," argues Chase Devens, a researcher at Messari. The immediate listings across popular centralized crypto exchanges like Binance are the primary reason for the rapid rise in valuation, adds Devens..
For instance, SHIB's first centralized exchange listing appeared more than 260 days after launch. In comparison, PEPE's centralized exchange debut occurred only six days after launch. And 22 days later, the token started trading on Binance, the world's largest crypto exchange by volume.
"Not only do these integrations lower the barrier for retail speculation, they also enable large capital providers to provide off-chain market making services," Devens notes, adding:
"PEPE perpetual futures are now available on exchanges like Binance and Bybit to give users access to 100x leverage against PEPE’s price. In only a few days, PEPE derivative volumes have already surpassed daily spot trading volumes."
The launch of PEPE also coincides with the 100% rise in Uniswap’s daily active users on Ethereum, now approaching its all-time high of 90,000 from May 2021.
As a note of caution, the excitement and growth of PEPE shows similarities with the final phase of 2021's memecoin bull run.
Notably, PEPE's short-term gains appear identical to DOGE's price rally on the weekly charts. Also, its ongoing correction looks similar to DOGE's 90%-plus decline from its record high of $0.75 in May 2021.
In other words, Pepecoin's price could extend its ongoing correction in the short term toward $0.00000083, or 35% below the current price levels.
Moreover, a Dogecoin-like 90% crash from the market top would bring PEPE's price to $0.00000035, which served as resistance in April 2023.