The closely followed blockchain data analytics platform Santiment has revealed that a price target that has become widespread among altcoin investors is unrealistic. Due to its recent rally, investors expected this altcoin to surpass giants like SHIB and DOGE.
“Can’t be as big as SHIB and DOGE”
Crypto players have been experiencing a new meme coin rally since mid-April. Pepe Coin’s market exit and 4,200% rise in a short time made it the only option for investors who were overwhelmed by the bear market.
However, Pepe’s massive rally has led to speculation among the community that he will surpass DOGE and SHIB. In its most recent analysis, Santiment questions how realistic this expectation is.
🐸 The $PEPE #FOMO was in full force during the first week of May, jumping approximately +1,200% in a week before its predictable decline. Our latest insight looks at how this #memecoin surge compared to ones of the past, and how we can learn from it. 👇 https://t.co/LusXE2urza pic.twitter.com/hsfXRu1UYp
— Santiment (@santimentfeed) May 16, 2023
The true leader of the meme coin market
In their latest analysis, the blockchain data analytics platform compared PEPE to other meme coins. The first indicator here was “trading volume”, which measures the total daily circulation of a coin.
Here is a chart highlighting what the trading volume for PEPE has looked like recently and the behavior of the indicator during the respective peaks of Dogecoin and Shiba Inu:
As shown in the chart above, PEPE has recorded a peak trading volume of $2 billion so far. That alone is a pretty big number. But compared to what Dogecoin and Shiba Inu have seen at their peak, the increase seems very small.
“The trend of individual investors has changed significantly”
The massive increases in transaction volume of DOGE and SHIB came at a time when they were maturing. However, the Pepe Coin rally occurs when it is still in its infancy. This is one of the most obvious differences between PEPE and other meme coin giants.
Santiment said, “PEPE’s trading volume is significantly low. But it still leaves room for growth and untapped potential. But it also means that market liquidity and individual participation for PEPE is much less than what DOGE and SHIB have experienced in previous years. In fact, the individual selling landscape seems to have changed dramatically, with individual involvement that seems almost non-existent,” he explains.
Social volume
The other metric is “social volume,” which tells us the extent of discussion a particular coin receives on social media platforms. The chart below compares 3 meme coins by social volume.
In terms of the discussions that took place on Twitter, PEPE was actually on par with DOGE and SHIB during their heyday. “However, when it comes to mainstream media coverage, PEPE falls short. “While DOGE is being discussed on national television, PEPE remains primarily confined to the crypto Twitter realm.”
Conclusion
Based on the fact that individual investors and general interest are low for Pepe Coin, Santiment concluded that the frog-based meme coin may have further growth potential, but is unlikely to touch the same heights as its predecessors.
