Pepecoin, individual investors are absent ─ Is it difficult to become No. 1 meme coin | coindesk JAPAN | Coindesk Japan

Pepecoin (PEPE) has a market cap of $1.5 billion in just a few weeks. Despite billions of dollars in transaction volume per coin and the birth of many imitation coins, retail investors were largely uninvolved, according to a new report from blockchain data firm Santiment. found.

Santiment compares Pepecoin’s liquidity and trading metrics to Dogecoin (DOGE) and Shiba Inu Coin (SHIB). Both are Shiba Inu-themed tokens, and had a market capitalization of $160 billion at their peak.

low trading volume

Dogecoin and Shiba Inu coin peaked at $70 billion and $40 billion, respectively, while Pepecoin’s trading volume was just $2 billion, according to a Santiment report.

However, it should be noted that Pepecoin has reached such high volumes in a bear market, with overall low liquidity as major market makers have scaled back trading in cryptocurrencies. is. There is room for growth when overall market conditions improve.

“While Pepecoin’s trading volume is fairly low, it still has room for growth and untapped potential,” Santimento said. “At the same time, however, the liquidity and individual investor involvement in the Pepecoin market is far less than what Dogecoin and Shiba Inu Coin have seen in the last few years. In fact, the environment surrounding individual investors has changed dramatically. , there appears to be little involvement,” he added.

Declining interest of individual investors

This situation has led to a decline in the memecoin project’s trading volume among the more average individual investors who do not belong to “CryptoTwitter”. The memecoin project may not actually be that popular.

“While the conversation[on Twitter]continues, it appears that interest and investment from retail investors has dropped significantly,” Santimento said.

However, despite the differences in trading volume and liquidity, Pepecoin’s “social volume” in crypto media is comparable to that of Dogecoin and Shiba Inu Coin at its peak, Santimento said. Social volume is a measure of social media engagement, such as tweets and posts, and is believed to indicate the number of people actively discussing a particular token.

Santiment

Some investors are still bullish

Meanwhile, investors looking to Pepecoin remain fairly bullish on Pepecoin’s performance over the next few years.

“We are not overly stressed by the drop or FUD (fear, uncertainty and doubt) and we are holding steady. Pepecoin has challenged Shiba Inu and Dogecoin and made big gains in a bull market. We are confident it will,” said Pepecoin holder @AdamMetaverse in a direct message to CoinDesk.

@AdamMetaverse is part of the rationale behind Pepecoin’s popularity among crypto-twitters, memes based on the cartoon character Pepe the Frog, including images circulating online. , and the rapid listing of Pepecoin on cryptocurrency exchanges.

｜Translation: coindesk JAPAN
｜Editing: Rinan Hayashi
｜Image: Santiment
｜Original: Absence of Retail Investors Could Stand in the Way of Pepecoin’s Rise to Top Meme Coin: Santiment