• A new report by on-chain analytics firm Santiment suggests Pepecoin (PEPE) could face challenges amid a generally bleak trading environment.
• The report compared the liquidity and trading metrics for PEPE against shiba inu (SHIB) and dogecoin (DOGE), which had higher trading volumes at peak.
• Despite lower liquidity, PEPE tokens managed to reach a $1.5 billion market cap in a few weeks, opening up potential for future growth when overall market conditions are better.
Retail Participation Appears Non-Existent
Santiment noted that while dogecoin and shiba inu hit trading volumes of $70 billion and $40 billion respectively at peak, pepecoin managed a comparatively lesser $2 billion. A big factor here is that pepecoin raked up such volumes in the midst of a bear market – one that’s marred with generally lower liquidity as key market makers scaled back crypto trading plans. This opens up the potential for future growth when overall market conditions are better. However, it also means that the liquidity and retail participation in the market for PEPE is far less than what DOGE and SHIB experienced in previous years. In fact, it seems the retail landscape has changed dramatically, with retail participation appearing nearly nonexistent – resulting in “dwindling volumes” for meme coins such as PEPE.
Potential Risks Ahead
The absence of retail investors from Pepecoin’s stellar rise to $1.5 billion market cap could stand in the way of its future success – especially if other meme coins start taking off again due to increased activity from individual traders or institutional investors seeking profits from high volatility markets like crypto. If this occurs, then Pepecoin may not be able to compete with these newcomers on an equal footing due to its lack of active participants compared to them.
Room For Growth & Untapped Potential
Despite these risks, Santiment believes there is still room for growth and untapped potential within Pepecoin’s current state since it was able to achieve such success without much involvement from retail traders or institutional investors; which suggests its underlying technology may be strong enough to sustain itself even without heavy external support or hype around it right now.
Overall, although Pepecoin faces challenges amid a generally bleak trading environment today – there is still potential for it to grow if more people start investing into meme coins again when overall market conditions improve; making now an opportune time to consider investing into Pepecoins before they become too popular again!