Dogecoin’s Rise: Attracting PEPE Investors’ Attention

Dogecoin's Rise: Attracting PEPE Investors' Attention

The Impact of Dogecoin Rally on the PEPE Network

Dogecoin (DOGE) has recently made headlines with its price rally, leading to significant effects on the PEPE network and its investors. This surge in DOGE’s price has caused a shift in investor behavior, resulting in a decline in the activity of the PEPE network.

Decline in PEPE Network Activity

On-chain data indicates that as the price of DOGE surged in mid-July, investors began abandoning their holdings in PEPE. This shift in focus towards DOGE led to a sharp decline in the PEPE network’s activity. A crucial metric used to gauge network activity, the Daily Active Addresses, took a significant 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. The following table illustrates the decline in PEPE’s daily active addresses:

Date Daily Active Addresses
July 14 5,086
July 25 1,999
Percentage 61% decline
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 has seen 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.

Dogecoin Price Increase

Source: CoinGecko

The impact of the DOGE rally on PEPE was not limited to network activity alone. Within the same seven-day period, PEPE’s price declined by 13%. This 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 sole meme coin project to do so. Other projects like Shiba Inu (SHIB) and ApeCoin (APE) also saw minor increases in market cap. The surge in social volume for these meme coins typically signals an approaching peak as enthusiasm and speculation drive their prices to unsustainable levels.

Dogecoin Market Cap

Source: TradingView.com

Data analytics firm Santiment pointed out these market cap increases in DOGE, SHIB, and APE, attributing the rise to what they referred to as “meme coin magic” that periodically captures the attention of crypto enthusiasts. 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. source

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, with the crypto market being influenced by hype and social media trends, it is crucial for investors to remain cautious and vigilant to avoid falling prey to speculative manias. Investing in cryptocurrencies always carries a level of risk, and one should carefully evaluate the fundamentals and consider the potential impact of market trends.

(This article should not be construed as investment advice. Investing involves risk, and when you invest, your capital is subject to risk).

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