The crypto ecosystem experienced a promising upsurge this week as Bitcoin retested the $30,000 price level for the first time since April. While the majority of altcoins are seeing a revival in their price actions, meme coins, including Dogecoin (DOGE) and PEPE, have been on the radar of most traders. Analyst Miles Deutscher set out to compare which of the two meme coins will be better off in the long term.
DOGE v. PEPE comparison
According to Miles, PEPE has an advantage over Dogecoin in the long term. He cited the Underwater Thesis, which posits that a smaller number of PEPE holders are underwater than DOGE holders. This implies that for PEPE, there will be lower selling pressure as the price rises in the near future.
Also, PEPE has a lower multiple to reach the previous ATH, which is just about 2.8x, while the multiple to retest its ATH for Dogecoin is roughly about 12x. Miles' analysis also highlighted the fact that investors are typically fatigued with the DOGE meme and consider the frog theme associated with PEPE fresher and more intriguing.
I think $PEPE outperforms $DOGE next cycle.— Miles Deutscher (@milesdeutscher) June 23, 2023
• The Underwater Thesis: Less PEPE holders underwater vs DOGE, meaning less sell pressure on the way up + lower multiples to reach previous ATH (2.8x vs 12x).
• People are more fatigued with the DOGE meme, Pepe feels fresher…
While this might not mean much, in reality, Miles noted that there is about a 14x discrepancy in terms of market capitalization. This implies that PEPE generally requires less liquidity to move its price upward when compared to Dogecoin.
Meme coin relevance: Place of SHIB
While Miles' analysis focuses on just PEPE and DOGE, Shiba Inu (SHIB) is also a meme coin to reckon with at this time. While SHIB also features a DOGE theme that Miles claims investors might be tired of, the protocol has diversified its relevance with the development and launch of the Shibarium protocol.
While the likelihood of PEPE and DOGE growth in the near term is largely based on speculation, any potential growth in SHIB will hinge on its new utility.