PEPE Skyrockets By 1000% – How Did This Frog Go Viral?

2023-05-09, 06:45

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## 【TR; DR】

In the world of cryptocurrency, the latest sensation is the PEPE meme coin. While many people might have heard of <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>, and other popular cryptocurrencies, PEPE coin has been making <a href="/price/waves-waves" target="_blank" class="blog_inner_link">Waves</a> recently due to its big price rise. In this article, we will explore what PEPE coin is, its recent price rise, and the reasons behind it.

## What Is The PEPE Coin?

PEPE coin is a cryptocurrency that was launched in early 2021. The coin takes its name from the popular internet meme featuring a green frog named Pepe. The coin's developers claim that the currency is designed to be a fun and lighthearted alternative to other more serious cryptocurrencies.

PEPE coin quickly gained a following on social media, with many users creating memes and other content to promote the coin. The coin's popularity skyrocketed in April 2023 when it experienced a massive price rise, going from just a few cents to over $200 in a matter of days.

## What Do The Bulls Think?

According to an article in Outlook India, the rise in PEPE coin's price was driven by a number of factors. Firstly, the coin's low market cap made it an attractive investment option for those looking to make big gains quickly. Additionally, the coin's popularity on social media helped to create a buzz around it, with many users sharing memes and other content related to the coin.

Another reason for the rise in PEPE coin's price was the increasing interest in cryptocurrencies in general. As more people become interested in investing in cryptocurrency, they are looking for new and exciting investment opportunities. PEPE coin, with its fun and lighthearted approach, was a perfect fit for these new investors.

Bitcoinist reports that PEPE coin's rally was further boosted by the launch of new projects related to the coin. For example, the PEPE NFT marketplace was launched, which allows users to buy and sell unique digital assets based on the Pepe meme. This increased the utility of the coin, making it more attractive to investors.

## What Do The Bears Think?

Despite the rapid rise in the price of PEPE coin, many analysts warn that it is still a highly speculative investment. In an article on CoinDesk, analysts noted that the coin's price rise was not based on any fundamental factors such as increased adoption or usage of the coin. Instead, it was largely driven by hype and speculation.

However, this has not stopped investors from pouring money into the coin. According to CoinDesk, one investor made almost $5 million in profit by investing just $100 in the PEPE coin at the start of the rally. While this kind of return is certainly impressive, it also highlights the risks involved in investing in highly speculative assets like cryptocurrency.

So, what does the future hold for PEPE coin? It is difficult to say for sure, but many analysts believe that the coin's price rise is not sustainable in the long term. As the hype around the coin fades, its price may begin to fall. However, others argue that the coin's popularity and utility will continue to grow, making it a solid investment option.

Regardless of the future of PEPE coin, its rise to fame is certainly an interesting case study in the world of cryptocurrency. The coin's success has been driven by a combination of hype, speculation, and clever marketing. While this may not be a recipe for long-term success, it has certainly made for an exciting ride for those who have invested in the coin.

## Why Has PEPE Skyrocketed To Viral Status?

With PEPE joining the expansive roster of existing meme coins that have soared to international superstar statuses, such as FLOKI, DOGE, and SHIB, PEPE is another currency whose success can be attributed to the superpower that is social media. Platforms like Twitter, Reddit, and TikTok have become a breeding ground for new cryptocurrencies, with users creating memes and other content to promote their favorite coins. This can lead to a snowball effect, where a small group of early adopters start to promote a coin, which then gains momentum and attracts more investors.

Another reason for the popularity of meme cryptocurrencies is their appeal to younger generations. Memes are a ubiquitous part of online culture, and many younger people are drawn to cryptocurrencies that have a fun, lighthearted vibe. This is in contrast to more traditional cryptocurrencies like <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a>, which are often seen as being more serious and technical.

Meme cryptocurrencies also offer a sense of community and belonging to their users. People who invest in these coins often feel like they are part of a movement, and they enjoy being part of a group that shares their interests and values. This can create a strong sense of loyalty to a particular cryptocurrency, even in the face of negative news or market conditions.

Finally, meme cryptocurrencies are often seen as a way to make quick profits. Many of these coins have low market caps and are therefore more volatile than established cryptocurrencies like <a href="/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> or <a href="/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a>. This can lead to rapid price rises and falls, which can be exciting for investors looking for a high-risk, high-reward investment opportunity.
However, it is important to note that investing in meme cryptocurrencies is not without risk.

As with any investment, there is always the possibility of losing money, especially if you invest more than you can afford to lose. Additionally, many meme cryptocurrencies lack real-world utility, meaning that their price rises may not be sustainable in the long term, which can lead to them being referred to as ‘pump and dumps’ or being inherently volatile.

## The Future Of PEPE

As we mentioned earlier, PEPE coin has experienced significant price increases recently, rising by over 1,500% in just a few days. This has led some investors to wonder if the coin will continue to rise in the future or if its price is due for a correction. It's difficult to predict the future of any cryptocurrency with certainty, and PEPE coin is no exception. However, there are a few factors that could influence the coin's future performance.

One factor is the ongoing popularity of memes and meme culture. As long as memes remain a popular part of internet culture, there will likely be demand for meme-based cryptocurrencies like PEPE coin. However, it's important to note that the popularity of memes can be fickle and can change quickly, which could have an impact on the coin's long-term viability.

Another factor to consider is the overall health of the cryptocurrency market. PEPE coin, like all cryptocurrencies, is subject to market conditions and can be affected by factors like regulatory changes, market volatility, and investor sentiment. If the broader cryptocurrency market experiences a downturn, it's possible that PEPE coin could be affected as well.

Finally, the development of real-world use cases for PEPE coin could play a role in its future performance. While the coin is primarily used for tipping and gifting within online communities, it's possible that it could be adopted for other purposes in the future. For example, the coin could be used as a payment method for online purchases or as a way to support content creators on social media platforms.

Overall, the future of PEPE coin is uncertain, but it's clear that the coin has captured the attention of many investors and has seen significant price increases recently. Whether the coin will continue to rise in the future or experience a correction remains to be seen, but investors should approach the coin with caution and do their own research before making any investment decisions.

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<div>Author:** Matthew W-D **, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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