In the ever-evolving world of cryptocurrencies, analysts and experts continuously make predictions about the market’s future and which coins are likely to outperform others. One such analyst, Miles Deutscher, has sparked intrigue by boldly stating that PEPE, a relatively newer meme-coin, will outshine the well-established DOGE in the next cycle. Deutscher’s analysis provides compelling reasons to support his stance, shedding light on unique factors that could drive PEPE’s success.
The Underwater Thesis: Less Sell Pressure and Lower Multiples
Deutscher introduces the concept of the “Underwater Thesis,” which suggests that PEPE has an advantage over DOGE due to fewer holders being underwater. Being underwater means that investors hold the asset at a price higher than its current value, leading to potential sell-offs to recoup losses.
In this regard, PEPE appears to have a more favourable position, experiencing less sell pressure on its way up. Furthermore, Deutscher points out that PEPE only needs to achieve a 2.8x multiple to reach its previous all-time high, whereas DOGE needs a substantial 12x multiple. This lower multiple could expedite PEPE’s journey to new highs.
Fatigue with DOGE Meme and the Freshness of PEPE
Another aspect Deutscher considers is the sentiment surrounding the memes associated with DOGE and PEPE. DOGE has enjoyed significant popularity and mainstream recognition, Deutscher argues that the meme fatigue among inventors could work in PEPE’s favour. PEPE is seen as a fresher and more organic meme, potentially resonating with a new wave of cryptocurrency enthusiasts and providing it with a competitive edge over DOGE.
Market Cap Discrepancy: Liquidity Advantage for PEPE
Dogecoin is priced at $0.0679236 per unit, with a market cap of $9.50B. It has a 24-hour trading volume of $422.73M and has gained 5.72% in value. The circulating supply of DOGE is around 139.87B.
Meanwhile, PEPE is priced at $0.0000016 per unit, with a market cap of $620.17M. Its 24-hour trading volume is $758.46M, and it has gained 5.37% in the past 24 hours. The circulating supply of PEPE is around 391,790.00B.
Deutscher highlights the significant difference in market capitalisation between DOGE and PEPE. PEPE requires much less liquidity to move its price compared to DOGE, This discrepancy implies that a small influx of investment could potentially have a more pronounced impact on PEPE price movement, leading to greater upside potential.
Counterarguments and DOGE’s Strengths
Deutscher acknowledges the counter-arguments in favour of DOGE. Firstly, DOGE’s longevity since 2013 grants it a considerable advantage in terms of surviving crypto market cycles. Additionally, DOGE boasts wider crypto exchange listings and higher brand awareness among retail investors. Deutscher also recognises the possibility that investors may initially gravitate towards DOGE due to familiarity and its established presence in the cryptocurrency space.
An analyst, having a pessimistic outlook on the future prospects of meme coins beyond DOGE, suggests that the meme coins, like PEPE, Shib and Floki, despite their individual identities, are ultimately tied to the performance and influence of DOGE, In the analyst’s opinion, as DOGE continues to maintain its prominence and popularity, other meme-coins will struggle to maintain their value.
Anyway, while acknowledging DOGE’s strengths, Deutscher maintains his observation, leaving investors and enthusiasts eagerly anticipating the next meme coin showdown.