• The Santiment report indicated that Pepecoin (PEPE) may face challenges in the market due to a lack of retail trading activity.
• Despite the lower liquidity and trading volume, PEPE has experienced similar social media engagement compared to dogecoin (DOGE) and shiba inu (SHIB).
• Retail participation in the crypto space appears to have waned significantly from previous years, leading to dwindling volumes for meme coin projects.
Absence of Retail Investors Could Stand in the Way of Pepecoin’s Rise to Top Meme Coin
Santiment Report Indicates Challenges Ahead
A new report by on-chain analytics firm Santiment indicates that pepecoin (PEPE) could face challenges amid a generally bleak trading environment. While dogecoin (DOGE) and shiba inu (SHIB) hit peak volumes of $70 billion and $40 billion respectively, pepecoin managed a comparatively lesser $2 billion. This could be attributed to a lack of retail participation, with many key market makers scaling back on crypto trading plans.
Retail Participation Appears Nearly Non-Existent
The report noted that despite the differences in trading volume and liquidity, PEPE’s social volume within the crypto media is on par with DOGE and SHIB during their peak periods. However, it appears that interest and investment from retail traders have significantly diminished since then. This has resulted in dwindling volumes for meme coin projects among retail traders – ones who exist outside of Crypto Twitter.
Pepecoin Has Room for Growth
Despite this absence of retail participation, Santiment noted that there is still room for growth when overall market conditions are better. As such, pepecoin still holds untapped potential as it continues its rise towards becoming one of the top meme coins.
Crypto Market Volatility Could Impact Prospects
It remains to be seen how much impact volatility will have on pepecoin’s future prospects however. With so few participants actively involved in its trade cycles at present, any sharp movements in either direction could significantly affect its price action going forward – an outcome which would not be surprising given its already stratospheric rise over such a short period of time.
Conclusion
Overall, while pepecoin has shown remarkable promise early on due to its viral popularity among crypto Twitter users, it may yet struggle to truly become one of the top meme coins if it fails to attract more retail investors into its ecosystem soon enough.