PEPE Investors are Shifting to Dogecoin, What’s Behind this Trend?
[TL; DR]
Many PEPE investors are shifting their investments to Dogecoin which is performing better on the market.
Whereas the price of DOGE has been rising since 15 July PEPE coin has been experiencing a downtrend.
DOGE has its blockchain while PEPE coin exists on the Ethereum network.
Introduction
The popular memecoin, Dogecoin, has been recently rallying which has impacted the performance of the PEPE coin. For a long time, Doge has faced stiff competition from many dog-themed memecoins like Floki Inu and Shiba Inu. Recently, PEPE coin has been its greatest competitor. This article focuses on the price performances of Doge and PEPE coins.
Investors Shifting from PEPE coin to DogeCoin
By 26 July the PEPE price had dropped by 45% from its monthly peak of $0.00000183 it registered on 3 July. Basically, the price of PEPE surged remarkably during the end of June until it fluctuated around $0.0000018 on 3 July.
However, PEPE’s comparatively poor performance has forced many investors to abandon it in favor of Dogecoin which has been rallying for some weeks now. In fact, Doge coin started its upward price performance around mid-July. The following graph shows the price performance of Dogecoin since that time.
Doge coin Price - CoinGecko
As The Graph indicates, the price of Doge rose significantly since 15 July. This price surge attracted PEPE investors to shift their funds to Doge coin. The situation is very different from the PEPE price which has been decreasing since 14 July as the next picture shows.
PEPE Coin Price - CoinGecko
As the image indicates, there has been a PEPE price dropping since 15 July. From that time till now, 4 August, the price of PEPE has decreased by 25.7%. However, during the same period the price of Doge increased by 11.7%.
PEPE Network Activity Decreases
Apart from the decrease in the price of PEPE coin, there have been other changes in its network activity. For instance, on-chain data shows that PEPE coin daily active addresses decreased from 5,086 on 14 July to 1,999 on 26 July. This is a 61% decline in the network usage. Incidentally, it is during the same period when its price dropped by 45%.
A large decrease in the number of wallets indicates a fall in demand for the coin. Also, the fact that the number of PEPE active users started decreasing two days after the Doge coin began rallying may indicate that PEPE investors were shifting their investment to Doge.
More importantly, the PEPE network growth decreased by about 73%, from 1,743 to 463. In simple terms, the network growth is a metric that shows the number of new users which a blockchain attracts within a given period. The decrease in the number of active users shows that PEPE’s market share has been shrinking. The next diagram shows the change in the number of network users between the two networks.
Change in network users for PEPE and DOGE coin - Santiment
As observed, the number of new active users on Doge Network have been increasing faster than those of PEPE coin.
Read also: Pepe (PEPE) Price Prediction 2023-2030
Performance of other Memecoins
The Doge coin was not the only memecoin that experienced an upward price movement during the last two weeks of July. The SHIB Inu and ApeCoin (APE) also gained marginally, raising their market capitalization.
According to Santiment, there was also a surge in the social volumes of Doge, SHIB and APE, showing that investors have high interest in them. However, the spike in social volumes may indicate that the excitement around Dogecoin may reach a peak.
Doge, SHIB and APE on High Social Volume- Santiment
Santiment commented, “The week has kicked off with some memecoin magic, as Dogecoin, Shiba Inu, & Ape coin have enjoyed minor market cap rises. As is typically the case with these types of assets, high social volume spikes will signal tops. $DOGE excitement is heating up.”
PEPE Price Prediction
If the PEPE investors continue to sell off PEPE coins to buy Dogecoin, PEPE price could fall below $0.0000010 and add another zero. However, some traders may be willing to sell their PEPE at $0.0000015.
Also, note that the action of the 32,000 wallets that recently purchased 84.8 million PEPE coins at an average price of $0.0000015 may have an impact on its future price. For example, if they buy more coins to avoid losses there may be a price rebound.
However, the bearish momentum may come to an end if PEPE reaches a price of $0.0000020. Most likely, if the price breaks above $0.0000020 it may reach $0.0000030.
Current PEPE Coin Price
The PEPE coin with a market cap of $511,034, 303 and a trading volume of $44,358,177.83 is currently trading at $0.00000122. It has gained 0.02% within the last 24 hours but lost 10,96% within the last 7 days. However, as the next diagram shows it is within a downtrend.
PEPE Coin Price - CoinGecko
As the diagram shows PEPE coin is hovering above the $0.00000120 price level.
Comparison between Dogecoin and PEPE Coin
The major similarity between Doge coin and PEPE coin is that they are both memecoins. As such, they are mainly used for speculative purposes. However, DOGE has its own blockchain while PEPE coin is based on the Ethereum blockchain.
Dogecoin, which uses a proof-of-work consensus mechanism, has a fixed annual issuance of 5 billion coins. This is different from the PEPE coin with a fixed supply of 420.69 trillion. Whereas PEPE coin was launched this year, DOGE is now a mainstream cryptocurrency. In addition, due to its first mover advantage DOGE has a higher market dominance than PEPE which is less than one year old.
The good thing is that both PEPE and DOGE are listed on various crypto exchanges. As such investors can buy Doge coin or PEPE on the exchanges.
Read also: How to Buy Pepe (PEPE)
Conclusion
The recent on-chain data shows that many PEPE investors are shifting their investments to Doge coin. The major reason for this is that DOGE has been rallying while PEPE was experiencing a price dropping. Dogecoin has an advantage over PEPE due to its first mover advantage, popularity and market dominance.
