17 Sep
17Sep

The memecoin segment, once driven by the likes of Dogecoin and Shiba Inu, is now facing a saturation point. Traders are increasingly flocking to new memecoins in search of the next big opportunity, relegating mainstream options like Pepe (PEPE) to the back seat. Despite this trend, recent data indicates that PEPE is still holding its ground and could potentially see renewed interest if market conditions shift in its favor.

PEPE's Continued Relevance

PEPE, the frog-themed memecoin, recently made headlines by securing the seventh spot on Binance's list of the top 15 most searched coins. This notable ranking underscores that PEPE continues to attract significant attention on one of the leading cryptocurrency exchanges. Such visibility is crucial, as it could lead to increased inflows if the broader market experiences a bullish reversal.

In addition to its strong search ranking, PEPE's relevance is further supported by its address growth. Since its launch, the total number of addresses holding PEPE with a non-zero balance has been on an upward trend. As of now, there are over 273,400 addresses with a non-zero balance. This figure stands in contrast to the 391,220 addresses holding PEPE with zero balance, bringing the total number of addresses to 664,000.

Profitability and Holder Sentiment

An analysis of PEPE's holder distribution reveals an improvement in profitability compared to 12 months ago. Approximately 156,200 addresses—about 66.24% of those with a balance—are currently in profit. This contrasts with roughly 21,360 addresses (9.30%) that are at breakeven, and 53,550 addresses (24.45%) that are in the red, having bought PEPE at higher price levels.

This profitability distribution suggests that a significant portion of PEPE holders are seeing positive returns, which may contribute to ongoing interest and potential for price appreciation.

Current Price Action and Market Dynamics

As of the latest data, PEPE is trading at $0.00000717. The second week of September saw some attempts at accumulation and recovery from recent lows, though these efforts have so far met with limited success. The current trading environment reflects a broader trend of low demand in the altcoin sector.

PEPE is currently testing a critical support level around the $0.0000065 price zone. Historically, this level has served as a strong liquidity zone, where previous accumulation efforts have led to price stabilization. This suggests that PEPE could experience a price pivot if it maintains or builds upon this support level.

Can PEPE Compete with Newer Memecoins?

While newer memecoins continue to attract significant attention and investment, PEPE's established presence and ongoing address growth indicate that it is far from irrelevant. Its ability to maintain a solid position in search rankings and address numbers, combined with a noteworthy proportion of profitable holders, positions it well for potential rebounds.

However, the memecoin market is notoriously volatile and driven by speculation. PEPE’s future performance will depend heavily on broader market trends, including potential shifts in investor sentiment and overall demand for memecoins.

Conclusion

Despite the saturation in the memecoin space and the rising popularity of new entrants, Pepe (PEPE) remains a significant player. Its continued relevance, address growth, and profitability among holders suggest that it could still have a role to play in the market. Traders and investors will need to watch for broader market trends and potential bullish signals to gauge whether PEPE can capitalize on its current position and achieve a robust performance moving forward.

September 2024, Cryptoniteuae

Comments
* The email will not be published on the website.