A massive resurgence of interest in meme-based cryptocurrencies has sent the price of Pepecoin (PEPE) leaping as much as 60% in 24 hours. The frog-themed token has seen epic gains over the past week, rising more than 370% with trading volumes hitting a record $3.6 billion according to data from CoinGecko.
TLDR
- Pepecoin (PEPE) sees massive 60% price surge in 24 hours, outpacing gains of other major meme coins like DOGE, SHIB, and FLOKI
- PEPE trading volumes hit all-time high of $3.6 billion as meme coin mania drives increased interest
- PEPE gains over 370% in past week, market cap doubles to $3 billion in just 2 days
- Meme coins like PEPE, FLOKI, SHIB, BONK see trading volumes spike 3000% week-over-week per Santiment data
- Short covering and futures liquidations possibly contributing to exaggerated price gains for PEPE
PEPE has significantly outperformed other well-known meme coins like Dogecoin (DOGE), Shiba Inu (SHIB) and Floki Inu (FLOKI) during this latest rally. Developers for DOGE, SHIB and FLOKI have rolled out ecosystem upgrades in recent weeks, but the enormity of Pepecoin’s gains show that fundamentals may not be the driving force behind this meme coin mania.
Rather, the triple-digit percentage jumps for PEPE and similar tokens may be more tied to speculative frenzy and a “fear of missing out” among traders hoping to ride monumental short-term gains. Risk appetite has risen broadly across crypto markets, sending prices for altcoins of all types skyward. Meme coins are seen as a way to make highly-leveraged bets on crypto adoption and user growth.
The surge of interest has sent the total market capitalization for meme-based cryptos past $50 billion, with PEPE now commanding a $3 billion market cap after doubling over a two day stretch. Trading volumes collectively topped $16 billion in the last 24 hours according to CoinMarketCap.
Data from analytics provider Santiment shows that average weekly volumes for top meme coins including PEPE, FLOKI, SHIB and BONK have exploded almost 3000% higher, speaking to the intense interest retail traders have shown in chasing overnight riches.
Some analysts point to outsized derivatives activity as a partial explanation for PEPE’s parabolic gains. More than $50 million worth of futures contracts tracking the token were liquidated amid the price eruptions, possibly forcing the closing of short positions and exaggerating the upside move.
The overwhelming enthusiasm for meme coins does have its skeptics in the crypto community. Critics contend that intraday price swings of 25-50% and speculative manias fueled by social media hype make tokens like PEPE poor long-term stores of value. Developers have also in some cases retained large portions of meme coin supplies, posing risks should they unload their stakes.
Yet proponents argue meme coins have a place in driving mainstream crypto adoption thanks to their fun branding elements and ties to internet culture.
They are seen as a gateway to decentralized finance for newer investors, captured by the prospects of stunning short-term gains.
For now, the power of memes holds strong as traders keep the crypto casino open 24/7 in search of life-changing payouts.
