PEPE’s Journey Mirrors SHIB’s Rise: Hold on Tight for the Next Thrilling Chapter!

June 8, 2023

What you'll learn 👉

Introduction

In this analysis made by onchain analyst Ario, we delve into the trends of two popular memecoins, $PEPE and $SHIB, to determine if PEPE follows the path of SHIB. By examining price trends and liquidity insights, we gain valuable insights into the behavior of these cryptocurrencies.

Price Trends

Both $PEPE and $SHIB have witnessed remarkable price surges within relatively short periods.

$PEPE reached its price ceiling in just one month, demonstrating a rapid surge.
On the other hand, $SHIB experienced an astonishing surge of over 136,000 times in approximately 454 days, signifying an exponential growth trajectory.

This data highlights the immense potential for explosive price movements in the memecoin market, providing traders and investors with opportunities for substantial gains.

Liquidity Insights

Uniswap, a prominent decentralized exchange, played a vital role in providing liquidity for both $PEPE and $SHIB. Notably, a significant portion of liquidity flowed into Uniswap, with the $WTH pair being particularly prominent.

In addition to Uniswap, liquidity also moved towards Coinbase, indicating a trend where users seek stability and more established platforms for trading memecoins. This behavior suggests that while memecoins may offer high volatility and potential profits, users still value the reliability and security offered by established exchanges.

Are Markets Returning to a Risk-Off Mentality?

The behavior of memecoins like $SHIB and $PEPE, characterized by significant price fluctuations followed by subsequent downward trends, can be indicative of a risk-off sentiment among traders. When memecoins experience rapid price growth and subsequent corrections, it suggests a cautious approach from market participants who are becoming more risk-averse.

These observations highlight the need for careful analysis and risk management when engaging in memecoin investments. While the potential for substantial gains exists, it is crucial to consider the inherent volatility and the impact of market sentiment.

By examining both price trends and liquidity insights, we gain a deeper understanding of the dynamics surrounding memecoins like $PEPE and $SHIB, offering valuable insights for traders and investors navigating this evolving landscape.

It seems that PEPE’s run is not yet over, if it were to follow SHIB’s footsteps.

Both Pepe and Shiba Inu are memecoins, which means they are based on memes and have no real-world utility. However, there are some key differences between the two coins.

Pepe is a newer coin, having been launched in 2023. Shiba Inu is an older coin, having been launched in 2020. Pepe has a smaller market capitalization than Shiba Inu, with a market cap of $904 million compared to Shiba Inu’s market cap of $6.9 billion.

Pepe has a smaller community of supporters than Shiba Inu. Shiba Inu has a large and active community of supporters, which has helped to drive its price up. Pepe is not as well-known as Shiba Inu, which may make it more difficult for it to attract new investors.

Pepe has a smaller supply than Shiba Inu. There are only 100 billion Pepe tokens in circulation, compared to Shiba Inu’s supply of 549 trillion tokens. This means that Pepe has the potential to appreciate in value more than Shiba Inu, if it is able to attract more investors.

Ultimately, the decision of whether to invest in Pepe or Shiba Inu is up to you. Both coins are risky investments, and there is no guarantee that either coin will succeed. However, Pepe may be a more attractive investment for those who are looking for a coin with a smaller market capitalization and a smaller supply.

Here is a table comparing the two coins:

Feature	Pepe	Shiba Inu
Launch date	2021	2020
Market capitalization	$904 million	$6.9 billion
Community size	Smaller	Larger
Token supply	100 billion	549 trillion
Potential for appreciation	Higher	Lower