PEPE achieved a market cap of $86 m in less than 5 days
PEPE is a newly announced Ethereum-based token. The name is a play on Pepe the Frog, a memetic emblem currently popular in cartoons. It has successfully maintained a market capitalization of $86 million. This was accomplished prior to the five-day timeframe. As a result, according to CoinGecko, it moves up to sixth place among memecoins in terms of value. Another option is WOJAK, which takes its name from the well-known memetic character and likewise managed to reach a market valuation of $10 million in just one day.
Ryan Watkins, a co-founder of Syncracy Capital, compares the situation surrounding memecoins to having two sides to a coin. Memecoins have a playful aspect, and their purportedly limited utility to gambling is on the other side of that coin. However, in his perspective, the crypto community’s interest in memecoins currently appears to be growing for entirely separate reasons. Furthermore, they bought the token when the market capitalization was $30,000, according to Z, a well-known pseudonymous trader, and right now its value has surged by an exponential 2000 times. PEPE appears to be competing with DOGE and SHIB overall.
All of this also seems to be having a cascading effect, in the case of more users of the Ethereum blockchain, and it is all about the downside. The gas fees pertaining to the amount of ETH it takes to carry out a single transaction have risen significantly. In other words, users of Ethereum are paying more than $30 for carrying out trading on a decentralized exchange, such as Uniswap or, for that matter, Balancer.
Also, as per the information gathered from SealLaunch, a certain entity is utilizing an Ethereum domain and operating an MEV bot, which is taking up 7% of the gas on Ethereum. The profit for MEV is derived from the insertion of orders made by unaware traders, which creates further instability in pricing, where the users are concerned.
In the opinion of Watkins at Syncracy, there does not seem to be any real negative impact of the memecoin scenario. The curiosity behind it is being utilized for generating capital for the industry and is essential for carrying out further funding in new ventures and projects. He feels they are working in tandem.