Meme Coin Madness: PEPE is now in the Top 20

By Stormgain | Stormgain | 29 May 2024


In the crypto market, optimism traditionally follows in Bitcoin's footsteps and spreads to coins with smaller capitalisation. At the peak of previous bull cycles, Bitcoin's share of the market ranged from 40% to 33%. It's now at 53%, hinting at the growth potential of other coins.

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The current cycle is different in that market participants are paying more attention to meme coins. Although it wasn't his intention, developer Casey Rodarmore kicked off a wave of excitement when he launched the Ordinals protocol.

In 2023, meme coins started to pop up on various blockchains. They caused fees with Bitcoin to rise above $30, and Solana is still experiencing high congestion and a large number of failed transactions because of them.

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The most successful of the meme projects was the PEPE coin, which was issued by an anonymous user in April 2023 on Ethereum's network. In 13 months, its capitalisation went from zero to $6.8 billion, overtaking coins such as UNI (one of the DeFi sector's most popular platforms) and Litecoin. PEPE's price has risen thousands of times in that period, and the Internet is rife with stories of lucky investors who have made millions of dollars.

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At the same time, meme coins don't have any inherent use, and teams of professional marketers are often secretly the ones promoting them. As such, the creators of the PEPE fan site should get credit. They honestly warn users about the lack of connection to brand creator Matt Fury and the coin's complete worthlessness.

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As PEPE grows, whales, i.e., those with wallets of 1 billion coins or more, are smoothly offloading their holdings. They still own 96% of all coins issued, and a massive reset remains only a matter of time. The rest of the groups, however, are showing an increase in shareholdings, helped by a generally positive news environment.

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We can take the research from CoinGecko as an example of this positive environment. The website's main conclusion is the high effectiveness of investments in meme coins.

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The ten most successful tokens from each group at the end of the first quarter were used to build the ranking, leaving out tens of thousands of meme coins that showed zero or negative results during the same time (read more in-depth in our article).

Meme coin investments can really make an investor rich if they can find the next lucky coin. However, from a statistical point of view, this is still a very hard thing to do.


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Stormgain
Stormgain

StormGain is a crypto trading platform for everyone. It’s a convenient solution for those who want to profit from either the growth or decline of the cryptocurrency market and from long-term investments in crypto assets. Available on any device, StormGain allows you to start trading the most popular and most capitalised coins with a multiplier of up to 200x, or you can just buy and hodl crypto.

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