Is Pepe Coin Ready For Another Pump? Here’s What On-Chain Data Says

Keshav Verma

1 year ago

4 mins read

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Here’s what the different on-chain indicators from Santiment have to say about whether Pepe Coin could see another pump soon or not.

The Memecoin’s On-Chain Metrics Have Been Down Since The Top

PEPE has been one of the hottest topics around the cryptocurrency market recently, thanks to the explosive growth that the meme coin has enjoyed. Between the end of last month and the 5th of May, the coin saw its price rise by an extraordinary 1,200%.

The uptrend, however, ended there and the cryptocurrency has been sharply plunging since then. According to Santiment, the on-chain analytics firm’s “social dominance” indicator signaled this top in advance.

Social dominance tells us what percentage of the discussions happening on social media related to the top 100 cryptocurrencies by market cap are talking about a given coin.

As the below chart shows, Pepe’s social dominance rose to very high values just before the top took form earlier in the month.

Looks like the value of the metric has come down in recent days | Source: Santiment

Whenever social dominance hits high levels, it’s a sign of euphoria among investors, which is something that has historically led to top formations for cryptocurrencies.

Santiment notes that the indicator still has a value of about 5%, meaning that 5% of all discussions related to the top 100 assets involve the meme coin currently.

“Seeing it get down to the 1-2% range would be a good sign that traders are beginning to stray away and look for pumps from other altcoins,” the firm explains.

The active addresses metric, which measures the total number of unique addresses taking part in some transaction activity on the blockchain, also saw a spike just before the top.

The metric seems to have calmed down | Source: Santiment

When this indicator has a high value, it means a large number of investors are making trades right now. The price generally becomes more likely to get volatile when the metric shows such a trend.

From the chart, it’s visible that the active addresses indicator has come down in value for PEPE in the last few days, which means that the market activity has calmed down.

An interesting trend is also visible in the data for the supply of the largest Pepe Coin holders, as the below graph displays.

The holdings of the memecoin's whales | Source: Santiment

These humongous holders had been accumulating while the rally had been going on, but right as the top took form, they started shedding coins from their wallets.

This cohort has continued to sell since then as PEPE’s value has gone downhill. “If you start seeing these lines moving up again, there is a much larger probability of PEPE going for its 2nd round of pumping (though probably a more minor one),” explains Santiment.

One positive sign for the asset, however, may be that the trading volume has rebounded recently after having declined since the top (just like the other metrics).

The trading volume of the asset | Source: Santiment

“All in all, meme coins have to be taken for what they are. They’re controlled by speculation and crowd expectations,” says the analytics firm. “In these fresh, new assets that fit this description, you’ll likely want to watch when the crowd gets too emphatic that one price direction is going to happen.”

PEPE Price

At the time of writing, Pepe Coin is trading around $0.000001251, down 37% in the last week.

The asset continues to decline | Source: PEPEUSD on TradingView

Featured image from iStock.com, charts from TradingView.com, Santiment.net

Keshav Verma

Keshav is currently a senior writer at NewsBTC and has been attached to the website since June 14, 2021.

Keshav has been writing for many years, first as a hobbyist and later as a freelancer. He has experience working in a variety of niches, even fiction at one point, but the cryptocurrency industry has been the longest he has been attached to.

In terms of official educational qualifications, Keshav holds a bachelor’s degree in Physics from one of the premier institutes of India, the University of Delhi (DU). He started the degree with an aim of eventually making a career in Physics, but the onset of COVID led to a shift in plans. The virus meant that the college classes had to be delivered in the online-mode and with it came free time for him to explore other passions.

Initially only seeking to make some beer money, Keshav unexpectedly landed clients offering real projects, after which there was no looking back. Writing was something he had always enjoyed and to be able to do it for a living was like a dream come true.

Keshav completed his Physics degree in 2022 and has been focusing on his writing career since, but that doesn’t mean his passion for Physics has ended. He eventually plans to re-enter university to obtain a masters degree in the same field, but perhaps only to satiate his own interest rather than for using it as a means to find employment..

Keshav has found blockchain and its concepts fascinating ever since he started going down the rabbit-hole back in 2020. On-chain analysis in particular has been something he likes to research more about, which is why his NewsBTC pieces tend to involve it in some form.

Being of the science background, Keshav likes if concepts are clear and consistent, so he generally explains the indicators he talks about in a bit of detail so that the readers can perhaps come out having understood and learnt something new.

As for hobbies, Keshav is super into football, anime, and videogames. He enjoys football not only as a watcher, but also as a player. For games, Keshav generally tends towards enjoying singleplayer adventures, with EA FC (formerly FIFA) being the only online game he is active in. Though, perhaps due to being ultra-focused on the game, he is today a semi-pro on the EA FC scene, regularly participating in tournaments and sometimes even taking back prize money.

Because of his enthusiasm for anime and games, he also self-learned Japanese along the way to consume some of the untranslated gems out there. The skill didn’t merely remain as just a hobby, either, as he put it to productive use during his exploration for small-time gigs at the start of COVID, fulfilling a couple of Japanese-to-English translation jobs.

Keshav is also big into fitness, with agility and acceleration-related workouts making a big part of his program due to the relevance they have in football. On top of that, he also has a more traditional strength based program for the gym, which he does to maintain an overall fitness level of his body.

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