Cryptocurrencies have been rapidly evolving, with new digital currencies emerging on a regular basis. While some of these new cryptocurrencies are backed by innovative blockchain technologies and use cases, like Ethereum and Solana, others are created with a sense of humour and a nod to internet culture.
One such example is PEPE cryptocurrency, which set the trend for the rise of memecoins. In this article, we will delve into the origins of PEPE cryptocurrency, its significance in the cryptocurrency market, and the impact it has had on the subsequent emergence of other memecoins.
The Origins of PEPE Cryptocurrency
PEPE cryptocurrency, or Pepe Cash, was created in 2016 as a parody of the cryptocurrency market. It is based on the popular internet meme character Pepe the Frog, which was created by American artist Matt Furie in 2005. The character quickly gained popularity on various online platforms, eventually becoming a symbol of internet culture.
The creators of PEPE cryptocurrency decided to use this beloved character as the basis for their digital currency, creating a unique and playful alternative to the more serious cryptocurrencies dominating the market. PEPE cryptocurrency was initially distributed through a card game called Rare Pepe, which allowed users to collect and trade digital cards featuring different variations of Pepe the Frog.
In early April, a new Twitter account called @pepecoineth emerged, featuring an image of the well-known Pepe the frog meme wearing a red hat that read “Make Memecoins Great Again,” a phrase similar to former US President Donald Trump’s campaign slogan. Two weeks later, the cryptocurrency token PEPE was introduced, inspired by the famous meme.
The unnamed developers created 420.69 trillion coins, and the token began trading on the decentralised exchange Uniswap. Influencers on Twitter, Telegram, and Discord started discussing PEPE, and within just one day of its launch, its price increased by over 900%. In less than three weeks, this memecoin’s market capitalisation surpassed $1.6 billion. At the time of writing, the token ranks among the top three memecoins, trailing only Dogecoin (DOGE) and Shiba Inu (SHIB).
The Frog’s Rise to Fame
The increasing popularity of Pepe resulted in the creation of numerous new memecoins. Those that were rumoured to be successful, experienced significant price increases, sometimes by tens or even hundreds of per cent.
Initially, the PEPE token was exclusively traded on decentralised crypto exchanges. This led to a surge in trading volume, resulting in increased transactions on the Ethereum blockchain.
The excitement around PEPE and other meme tokens caused a spike in activity on platforms like Uniswap, coinciding with Bitcoin and the overall crypto market reaching record price levels in 2021. Consequently, the network experienced a heavier load, causing Ethereum’s transaction fees to skyrocket.
Now, purchasing meme coins on a decentralised exchange or engaging in any direct interaction with the network could cost up to $50 in ETH cryptocurrency. High fees and the complex nature of decentralised exchanges have somewhat discouraged regular retail traders from participating.
However, understanding the growing interest, conventional crypto exchanges started introducing PEPE listings. Some of these exchanges include OKX, Bybit, KuCoin, Poloniex, Bitget, and more. BitMEX was the initial exchange to offer perpetual PEPE futures trading with up to 50x leverage.
The Peak of PEPE
Binance, the largest cryptocurrency exchange in the world, initially hesitated to get involved with memecoins. But, in early May, its CEO Changpeng Zhao mentioned during a Q&A session with subscribers that despite not understanding or trading memecoins himself, his platform will cater to users’ needs if there is demand.
This led the crypto community to believe that it was only a matter of time before PEPE would be listed on Binance, and indeed, the token was added to the exchange a few days later. CoinMarketCap data reveals that between May 9 and 10, PEPE trading volumes surpassed $420 million, even with a decline in the token’s price.
The platform’s statistics also indicate a rapid shift in trading volumes from Uniswap to Binance. Binance saw over $160 million in PEPE trades within a day, while Uniswap had $55 million. Factors such as a user-friendly interface and significantly lower fixed fees likely contributed to this change. On May 10, DEXTools analytics service reported that the number of unique PEPE token holders had crossed 100,000.
The Future of Memecoins
While PEPE coin and other memecoins have experienced significant growth and popularity, it’s essential to approach these digital assets with caution. Many of these tokens suffer from low liquidity, making it difficult for traders to buy and sell them at market rates.
This causes the tokens to be vulnerable to sudden price changes, where large buy orders can drive up their prices and vice versa. Professional traders exploit this situation by using bots to monitor and complete such bids, placing their own orders ahead of other investors.
Due to their volatility and the speculative nature of their value, investing in memecoins can be a risky endeavour.
Nonetheless, it’s undeniable that memecoins have brought a level of excitement and entertainment to the cryptocurrency market that has attracted a new wave of investors. As more individuals and institutions recognise the potential of cryptocurrencies as an asset class, it’s likely that memecoins will continue to evolve and innovate, offering unique opportunities for investors and enthusiasts alike.
Move Over Doggies, Frogs Are Taking Over
PEPE coin has undoubtedly played a significant role in the emergence and popularity of memecoins in the cryptocurrency market. Its innovative approach to combining meme culture with digital assets has inspired a new wave of digital currencies that offer investors an exciting and entertaining alternative to traditional cryptocurrencies.
Are you prepared to elevate your cryptocurrency trading game? Look no further than Crypto Garage!
Our platform provides sophisticated tools and functionalities to assist you in making well-informed trading choices and boosting your earnings as a crypto trader. Our expert upvote services cater to crypto ventures aiming to improve their prominence and trustworthiness in the field. Contact us now!
Expert in: Google Ads, SEM Expert, PPC Specialist, Paid Social, Facebook, Web Design and DeFi. I work exclusively with successful businesses that are looking to take things to the next level or ambitious startups who give themselves the means to do so. I have experience in many verticals: SaaS, finance, cryptocurrency, retail, real estate, law, IT, medical, pharmaceutical, travel and many more.