Pepe (PEPE) has skyrocketed by over 60 percent in the last month, reaching a record high with more than 239,000 on-chain holders.
The surge in demand for meme coins has overshadowed many utility-focused crypto projects during the current bullish trend in the crypto market.
While Bitcoin (BTC) is striving to surpass its all-time high of over $73,000 after being in a correction phase for the past two months, more short-term investors are turning to altcoins to capitalize on potential gains. The meme coin sector, led by Pepe (PEPE) and Floki Inu (FLOKI), has amassed a total market capitalization of nearly $69 billion, with a daily trading volume averaging around $6.9 billion.
The resurgence of celebrity meme coins has attracted retail traders to participate in the ongoing crypto bull run. However, Vitalik Buterin, the co-founder of Ethereum, has advised meme coin investors to steer clear of projects focused solely on financial gains and instead emphasize utility as the ultimate goal.
Pepe Shines Bright Among Top Crypto Projects
Pepe, known for its frog theme, has shown remarkable growth over the past six months, drawing interest from more high-net-worth investors. Recent on-chain data indicates that several PEPE whales have withdrawn over $10 million worth of the meme coin in the last week alone.
As a result, Pepe has witnessed substantial trading volume in recent weeks, surpassing that of Dogecoin (DOGE) and Shiba Inu (SHIB). According to data from Coinmarketcap, a platform backed by Binance, Pepe has recorded a 30-day trading volume of approximately $41 billion.
During the same period, XRP, supported by Ripple Labs, saw a total trading volume of $34 billion, while Dogecoin and WIF each recorded around $25 billion. Floki Inu and Shiba Inu saw trading volumes of $23 billion and $20 billion, respectively, in the past month.
Pepe’s Future Performance
The significant increase in the value of Pepe in recent months has largely been attributed to institutional backing. Additionally, PEPE has gained liquidity exceeding $60 million on various decentralized exchanges, facilitating seamless trading.
However, Pepe faces stiff competition from numerous other meme coins, particularly those inspired by US political figures and Wall Street themes. To maintain its momentum, PEPE’s core developers must continuously innovate to keep the community engaged, following the examples set by Shiba Inu and Floki Inu.
Midterm Price Projections
With a fully diluted valuation of around $6 billion and a daily trading volume of approximately $1 billion, Pepe has encountered resistance around $0.0000163. Despite establishing a support level at approximately $0.0000143, the meme coin has experienced volatility over the past two weeks.
If Pepe fails to defend its current support level, it could drop to around $0.000011, aligning with the weekly 0.618 Fibonacci Extension. Conversely, a bullish trend could propel the meme coin towards $0.00002, corresponding to the weekly 1.618 Fibonacci Extension.