Dogecoin (DOGE) has been making headlines again with its recent price rally, causing a significant impact on the PEPE network and its investors. As the price of DOGE surged around mid-July, on-chain data indicates that investors began to abandon their holdings in PEPE, leading to a sharp decline in the network’s activity.
Daily Active Addresses, a crucial metric used to gauge the level of network activity, took a hit during this period. On July 14, PEPE recorded 5,086 active users. However, by the close of July 25, that number had plummeted to a mere 1,999 daily dynamic addresses, representing a staggering 61% decline.
This abrupt drop in network usage suggests that many investors shifted their attention and funds towards DOGE, leaving PEPE behind.
PEPE daily active addresses. Source: Santiment
Dogecoin Hype Leaves PEPE In The Dust
The reason for this shift in investor behavior can be attributed to DOGE’s recent impressive performance in the market. Over the past seven days, DOGE saw a surge of 11.6%, reaching a price of $0.079, according to CoinGecko. DOGE also experienced a slight 0.7% climb in the past 24 hours.
Doge price in green in all timeframes. Source: Coingecko
The impact of the DOGE rally on PEPE also extended to its price. Within the same seven-day period, PEPE’s price declined 13%. The sell-off intensified as more investors shifted their focus to the meme-inspired DOGE, which enjoyed the spotlight as one of the top-performing cryptocurrencies.
‘Meme Coin Magic’
While DOGE experienced a boost in its market cap, it wasn’t the only meme coin project to do so. Other projects like Shiba Inu (SHIB) and ApeCoin (APE) also saw minor market cap increases.
The surge in social volume for these meme coins typically signals an approaching peak, as enthusiasm and speculation surrounding these assets tend to drive their prices to unsustainable levels.
Dogecoin market cap currently at $11.15 billion. Chart: TradingView.com
Data analytics firm Santiment pointed out the market cap increases in DOGE, SHIB, and APE, attributing the rise to the “meme coin magic” that seems to capture the attention of crypto enthusiasts periodically.
Santiment also warned that high social volume spikes often indicate potential market tops, suggesting that the excitement around DOGE might reach its peak.
🐶 The week has kicked off with some #memecoin magic, as #Dogecoin, #ShibaInu, & #Apecoin have enjoyed minor market cap rises. As is typically the case with these types of assets, high social volume spikes will signal tops. $DOGE excitement is heating up. https://t.co/Z0w3UXZDzz pic.twitter.com/h0mriBIpXh
— Santiment (@santimentfeed) July 24, 2023
The recent DOGE price rally has not only attracted more attention to the cryptocurrency itself but has also caused a significant impact on other meme-inspired projects like PEPE.
However, as the crypto market continues to be influenced by hype and social media trends, investors should remain cautious and vigilant to avoid falling prey to speculative manias.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
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