Memecoin mania: Social relevance, speculation drives PEPE surge

Memecoins person been portion and parcel of the cryptocurrency abstraction since the inception of Dogecoin backmost successful 2013, with fortunes made and ruined successful adjacent measure. But a caller token connected the artifact caused a stir successful caller weeks, arsenic Pepecoin (PEPE) grabs a chunk of the memecoin marketplace stock from plucky investors.

As antecedently reported by Cointelegraph, Pepecoin saw a 2.000% roar successful worth pursuing its motorboat successful precocious April 2023. The crushed for the token’s rally is chiefly attributed to zealous memecoin hype, with the task wide shared connected Twitter implicit the past month.

Today. $PEPE #MMGA pic.twitter.com/Adf0Vem8B3

— Pepe (@pepecoineth) April 14, 2023

The Pepecoin website itself is brandished with a closing disclaimer, labeling $PEPE arsenic "a meme coin with nary intrinsic worth oregon anticipation of fiscal return." The task besides stipulates that it has nary ceremonial squad oregon roadmap and that the token is "completely useless and for amusement purposes only.

Data analytics steadfast Nansen provided insightful information and cardinal takeaways pursuing the emergence of PEPE’s marketplace capitalization. Research expert Xin Yi estimated that the full memecoin marketplace worth is astir $20 billion, with the apical 5 tokens, DOGE, SHIB, PEPE, BABYDOGE and FLOKI, accounting for implicit $18 cardinal of the value.

$PEPE's token has spiked successful worth since successful launch, eclipsing the likes of $DOGE and $SHIB. Source: Nansen Query

Data provided from Nansen Query shows the monolithic spike successful token worth and marketplace capitalization of PEPE successful narration to the different apical 5 memecoins. Yi besides notes that the infographic does not overgarment a implicit picture, fixed that the information for PEPE reflects its listing connected Coingecko, which came a mates of weeks aft its inception.

$PEPE's token's marketplace capitalization surged by 400% since its inception. Source: Nansen Query

Yi told Cointelegraph that the societal facet of memecoins remains a large operator of capitalist sentiment and action, highlighting the likes of Elon Musk’s infamous Dogecoin touts and rampant Twitter bots driving memecoin hashtags to relevance connected Twitter:

“Since memecoins person nary intrinsic value, it relies connected catalysts specified arsenic societal relevance and besides events similar 4/20 which is known arsenic DOGE time tin impact the prices of the token arsenic well.”

As antecedently explored, Nansen provides information analytics and insights into ‘smart money’ cryptocurrency traders and holders by labeling wallets and tracking trades. The emergence of PEPE has besides attracted a important fig of ‘smart money’ holders arsenic per onchain information highlighted by Yi. She added that a fewer 1000 traders mightiness payment from the surge successful worth of memecoins, which is simply a gamble fixed that galore different memecoins are pump and dump oregon ‘rugpull’ operations:

“Nonetheless, gains connected 1 bully coin tin easy surpass the outgo of the different 'failed' coins, which is astir apt wherefore these memecoins stay charismatic for astir traders to ape into. Hence, it truly depends connected the investor's hazard appetite.”

Nevertheless, Yi besides pointed retired the inherent risks of memecoins which often pb to liquidity crunches, wherever large token holders dump their holdings which leaves smaller investors reeling from losses.

Related: Ethereum state interest jumped owed to memecoin frenzy with mixed comments connected web usability

A fig of cryptocurrency exchanges listed PEPE successful the aftermath of its motorboat and consequent capitalist appeal, including the likes of OKX, MEXC Global, Bitget, Gate.io and Huobi. Pepecoin 

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