- Meme coins like DOGE, SHIB, and PEPE offer both profit potential and significant risks.
- Dogecoin, the pioneer, has experienced both meteoric rises and sharp decline
- FOMO and FUD play crucial roles in the volatility of meme coins.
Memecoins of DOGE, SHIB, and PEPE form a playful yet serious force of crypto. Their volatile prices often fueled by public frenzy have attracted investors seeking quick profits and those looking for thrill rides. Santiment, in its latest analysis, offers valuable insights into the behavior and sentiment surrounding these assets by gauging key on-chain and social indicators.
Dogecoin, the granddaddy of meme coins, had a stellar journey since its debut in 2013. It went from a joke to a multi-billion-dollar asset demonstrating the power of community-driven hype during its decade-old existence. While early buyers made huge profits, those who bought when the price peaked ended up facing considerable losses during the price drop. The subsequent rise and fall of prices showcased the unpredictability of these asset-class Apart from DOGE, other meme coins like Shiba Inu and Pepe also highlighted the inherent risks associated with these speculative assets.
One of the key catalysts that drive memecoin price fluctuations is the role of market sentiment. Here, the Fear of missing out (FOMO) can lead to massive price surges, while fear, uncertainty, and doubt (FUD) can trigger sharp declines. Understanding these emotional factors is crucial for navigating the volatile memecoin market.
Key Findings: DOGE, SHIB, PEPE
To delve deeper into the top 3 meme coins by market cap—Dogecoin, Shiba Inu, and Pepe, we analyzed Santiment’s on-chain and social metrics. These are MVRV, a metric that measures the average return for different holding periods. Whale/Retail Accumulation tracks the distribution of holdings among large and small investors. And lastly, the Crowd Sentiment gauges the overall sentiment towards the meme coin based on social media discussions.
For the earliest meme coin, Dogecoin, the report observed that while short-term traders have seen slight profits, long-term holders remain in the red. Retail traders have been indecisive, and sentiment is neutral. On the other hand, Shiba Inu‘s performance compared to DOGE has been worse as its long-term holders suffered significant losses. Additionally, retail traders are on a selling spree, and the overall sentiment remains bearish. Pepe relatively turned out better, per the report. Unlike DOGE and SHIB, Pepe’s long-term holders have seen substantial returns amidst recent price gains. However, retail traders have been scooping up more coins instead of whales, and the overall sentiment is negative.
