In a period of lackluster crypto trading volumes influenced by macroeconomic uncertainty, the meme coin phenomenon, including Dogecoin, has emerged as a game-changer. The recent debut of Pepe Coin has ignited enthusiasm within the community, propelling it to the forefront of crypto discussions.
LunarCrush’s analysis reveals an astounding 6.09 million mentions of PEPE on social platforms in the past month, surpassing the combined mentions of Bitcoin and Ethereum. Bitcoin received 3.06 million mentions, while Ethereum garnered 2.88 million.
An article published today highlights that Pepe Coin achieved a $1 billion market capitalization within a mere 19 days of its launch, setting a remarkable milestone faster than Bitcoin, Ethereum, Dogecoin, and Shiba Inu.
According to a research report by Kaiko, meme coins, in general, have experienced an unforeseen surge in demand driven by the Pepe Coin frenzy. The report notes, “Crypto markets could hardly be described as ‘frothy’ right now, but meme coins have picked up an unexpected bid, with the PEPE token soaring to an astonishing $1bn market cap at the start of the month.”
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Dogecoin Remains the Preferred Choice for Market Makers in Meme Coin Trading
When it comes to meme coin trading, market makers maintain a neutral stance regarding the tokens they handle. However, analyzing the capital allocated to meme coin order books sheds light on the current market dynamics. Market makers, who provide liquidity by buying assets from sellers and selling them to buyers, profit from the bid-ask spread. Notably, Dogecoin continues to dominate, as Kaiko’s report emphasized that a significant portion of the consistent $55 million liquidity supporting meme coin order books is allocated to DOGE.
Since the advent of meme coin mania in April 2021, the market landscape has evolved considerably. Previously, 28 other players held sway over market depth, but their influence has diminished over time, making room for other participants. In terms of market depth, which indicates the market’s ability to absorb large orders without significant price impact, BitForex and Upbit have recently experienced substantial increases. This implies that small orders placed on these platforms are unlikely to affect the price of meme coins significantly.
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