• Memecoins have been popular in the cryptocurrency space since 2013.
• Recently, a new token on the block called Pepe (PEPE) has seen a 2,000% increase in value.
• Data analytics firm Nansen provided insight into the current memecoin market cap and the driving forces behind PEPE’s recent surge.
The cryptocurrency space is no stranger to memecoins, which have created fortunes and ruined many since Dogecoin’s inception back in 2013. The latest token to cause a stir is Pepe (PEPE), whose market capitalization has skyrocketed by 2000% following its launch in late April 2023.
Speculation & Social Relevance
The rally of PEPE can be largely attributed to memecoin hype on social media networks such as Twitter, where it was widely shared in the month after its launch. Despite bearing a disclaimer that states that it has „no intrinsic value or expectation of financial return“ and being „completely useless and for entertainment purposes only,“ speculation around PEPE’s worth continues to drive its market capitalization up.
Data analytics firm Nansen provided insight into PEPE’s impressive rise with research analyst Xin Yi estimating that the total memecoin market value is currently at around $20 billion, with the top five tokens accounting for over $18 billion of this figure. Yi also noted that data from CoinGecko reflects PEPE’s listing two weeks after its initial launch, thus not painting a complete picture of its growth over time – PEPE’s market capitalization surged by 400% since then.
Driving Factors Behind Memecoin Surge
Yi explained that investor sentiment and action are largely driven by social factors surrounding memecoins – talking about Elon Musk’s infamous Dogecoin touts and Twitter bots spreading memes about related tokens across their platform as evidence of this phenomenon. As these projects lack intrinsic value, they instead rely heavily on cata-lysts from celebrities, influencers and other prominent figures to drive investment decisions within the community.
In conclusion, while many view memecoins as completely „useless“ investments without any long-term financial returns expected from them; investors continue to speculate around these tokens with hopes of making substantial profits off them – evident through Pepe (PEPE)’s massive spike in market capitalization since its inception earlier this year due to rampant hype around it on social media networks such as Twitter.