A May 20 report from Messari showed that the unprecedented rise in PEPE has investors looking at the meme in a more appealing way.
The platform mentioned that in the first two weeks of its appearance, the broader market seemed to have abandoned the token, and participants began to focus on the possibility of expanding to other memes.
“Stories of early PEPE buyers getting rich with small initial investments made users more willing to speculate on other new memecoin launches. After the first two weeks of PEPE, we started noticing strong interest in other memecoins,” Messari said. tweet.
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However, there is a reason for this shift in mindset. According to a crypto market intelligence provider, PEPE has become the fastest growing ERC-20 token in existence.
This isn’t limited to quickly reaching a $1 billion market cap. It took only 22 days for the number of holders to break through the 100,000 mark. It took Pepe much less time to repeat such a feat than Shiba.
So it’s clear that, despite initial skepticism, market participants saw the potential of PEPE earlier than any other meme.
At the same time, it’s not the only facility changing perceptions.
In the same report, Messari pointed out that since DOGE and SHIB became popular in 2021, the familiarity of cryptocurrency market participants has also driven the rapid increase of holders.
As this drives the popularity of PEPE, it also leads to an increase in market cap per holder similar to SHIB. It is this interest that will push Ethereum’s ETH gas fees to new highs in 2023.
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ETH is the underlying asset of PEPE. Hence, this creates higher volatility and increased demand for this cryptocurrency. Typically, increased ETH demand leads to congestion and, in most cases, higher gas fees are inevitable.
This is because the first users traded the meme on a decentralized exchange (DEX), while PEPE is waiting to be listed on a centralized exchange (CEX).
But since MEXC was the first to list and Binance followed, most PEPE transactions are now on CEX.
This has naturally driven the adoption of PEPE since May 8th. Therefore, adoption trends are driven by off-chain marketplace creation, retailer participation, and especially derivatives trading. In addition, Messari did not forget to mention:
“PEPE derivatives trading volume has surpassed daily spot trading volume.”
After PEPE came out, a few memes popped up on other networks as well. The most surprising of these is Bitcoin, whose BRC-20 standard allows for the minting of fungible meme tokens.
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According to AMBCrypto