As soon as an asset increases in value or manages to surge above others in its class, the question arises as to which of its rivals could dethrone it. The longer the asset maintains its position in the lead, the more intense the debate grows. We’ve seen this happen with Bitcoin, the undisputed leader of the crypto market, and the constant comparisons to Ethereum, the only altcoin that might stand a chance to challenge it. Now, we can witness the same narrative unfold with Dogecoin, the pioneer of the meme coin subset.
Dogecoin may be the largest meme token by market cap, having occupied the frontrunner position for over ten years, but it’s certainly not the only meme coin worth noting. There are many contenders that might one day overtake it. Most look to Shiba Inu as the most likely asset to put an end to Dogecoin’s decade-long dominance since it’s the second most valuable meme coin and was nicknamed the Dogecoin killer.
However, Shiba Inu has been in the market for over five years and hasn’t been able to outdo its predecessor. So, now many have their eyes set on the third runner-up, Pepe Coin, as a potential challenger. Although the Pepecoin price has experienced significant fluctuations since its debut in May 2023, the asset, also known by its token ticker $PEPE, remains one of the most promising meme coins available, with a market cap of $3.19B.
Shortly after launch, Pepe soared by 700% in just one month. Last year, the token outpaced DOGE in terms of percentage growth, being among the best-performing assets in the crypto market. But does Pepe have what it takes to take its achievements further and become the next Dogecoin? Let’s see what the data suggests.
The Power of Celebrity Endorsements
The development of the crypto industry prompted numerous celebrities and influential figures to take an interest in digital currencies and get involved in different crypto projects. Their support not only brought more attention to the crypto landscape but also impacted the prices of the currencies they endorsed.
Dogecoin provides the best example in this respect. While the token already enjoyed a fair level of popularity among crypto enthusiasts, it was Elon Musk’s repeated tweets about the asset that pushed it into the limelight and helped it ascend to its current standing.
Well, the history seems to repeat itself, but this time with Pepe in the lead role. Pepe appears to be Elon Musk’s new favorite meme coin, as the billionaire businessman has made several remarks in this regard. In March 2024, Musk shared a meme on X featuring Pepe the Frog, which also serves as PEPE’s official mascot, to explain constitutional amendments. This resulted in a 12.2% surge for the asset. The same thing happened in December of the same year when Musk changed his profile picture on X with an image of Pepe the Frog, leading to a 12% increase in Pepe’s value.
These posts have had an undeniable positive impact on Pepe, increasing its visibility and popularity in the market. If Musk continues to endorse PEPE as he did with Dogecoin, it’s very likely that the meme coin will follow a similar trajectory. In 2022, Tesla started accepting Dogecoin as a form of payment for various goods and services, including charging station payments. Now, many speculate that the company might also include Pepe in their balance sheets. So far, Tesla has made no official statements in this regard, but if they do decide to make such a move, the Pepe price would undoubtedly skyrocket.
Pepe’s Prospects
Although Elon Musk’s influence can make a huge difference to Pepe’s development, the meme coin might need more than that to catch up with Dogecoin and steal its thunder. Analysts prefer to focus on other aspects to gauge Pepe’s appreciation potential, such as market cap. Pepe has a considerably smaller market cap than Dogecoin: $3.19B compared to $25.49B. A larger market cap indicates a stronger market presence and more stable prices. However, assets with smaller market caps have a higher potential for exponential increases, although they tend to be more volatile. This means that Pepe can experience more notable growth in the future than Dogecoin.
Pundits have also found some similarities between Dogecoin’s 2021 bull run and Pepe’s current price movements. Metrics seem to indicate that Pepe is charting a similar pattern, with its value being strongly correlated to Bitcoin’s all-time high breaks. If their assumptions are correct, Pepe might be in for a wild ride.
Ultimately, PEPE also has the advantage of being more modern than the meme coin initiator. While Dogecoin mostly relies on its legacy and community support to preserve its value, Pepe has a more innovative approach to meme coins and aims to introduce new ideas to the cryptocurrency ecosystem. This could attract interest from traders and investors looking for the next big meme coin.
The Challenges Ahead
Although Pepe shows great promise, it’s not going to be easy for the token, or any other meme coin for that matter, to throw Dogecoin off its throne. Stainability issues, growing competition, and market volatility stand as the biggest hurdles that could prevent Pepe from climbing higher in the crypto hierarchy. Pepe will need more than just hype to exceed its rivals. Without real-world applicability, it will be difficult, if not impossible, for Pepe to push past the likes of Shiba Inu and Dogecoin.
Whether Pepe will be capable of proving its worth and becoming a potential successor to Dogecoin remains a matter of debate for now, as its future depends on a variety of factors. For investors, it’s crucial to remain cautious and base their decisions on thorough market research. Staying up to date with the latest developments in the industry and building a solid investment strategy should be the main points of focus for anyone who wants to reduce risks and improve earning prospects.
