DOGE vs. PEPE: Who will win the memecoin competition in August this year?
Despite the number of PEPE holders dropping 18% this week, it still set a record with 472,158 people. The concentration of whales in Dogecoin (DOGE) is higher, and its adoption rate is better, giving it an edge both technically and fundamentally.
Speculative interest is heating up again.
In the past 24 hours, Memecoins have risen nearly 4%, with inflows surpassing $5 billion in just two days. This brings the total market cap of Memecoins to $65 billion, revitalizing risk appetite sentiment.
Dogecoin [DOGE] leads with a rebound of 3.51%, reaching the $0.20 mark. This significant rebound follows a 30% drop from a local high of $0.27 after two weeks of sell-off.
Meanwhile, the increase of Pepe [PEPE] is modest, rising 1.61% from a base of $0.0000104.
However, its PEPE/BTC chart still shows weakness. This currency pair has rebounded from a support level of 0.0000000000852 BTC, but it still underperforms compared to DOGE and other major currencies.
Rotation risk is quietly rising.
In other words, as Bitcoin [BTC] withdraws from safe-haven capital, traders are turning to higher beta investments like memecoins to chase short-term alpha.
The DOGE/BTC trading pair rose 1.72% at the beginning of this week. Six of the top ten tokens by daily gains are meme tokens.
Obviously, speculative buying has returned.
That said, PEPE has not seized the same tailwind opportunity. Although the PEPE/BTC currency pair rebounded from a key support level, it has yet to break into the top gainers list. Could this be a lagging trend, or is capital flow starting to exit?
Despite the price drop, PEPE's adoption rate remains stable.
PEPE fell 18% this week, making it the worst performer among the top three cryptocurrencies. However, the number of its holders has reached a historic high of 472,158.
Of course, it still lags far behind DOGE, which has 8.3 million holders.
However, magnifying the on-chain data reveals significant discrepancies.
According to Etherscan's metrics, the top 100 PEPE wallets control 72.74% of the total supply, indicating high concentration. In contrast, the top 100 holders of DOGE account for 63.79% of its circulating supply.
On the other hand, the top 10 holders of PEPE account for 39% of the total supply, while DOGE accounts for 44%. Overall, PEPE has a higher concentration among the top 100, but slightly lower concentration at the very top.
The concentration of wallets for DOGE is higher, and this strategy seems to be paying off. By the end of July, DOGE rose 30%, while PEPE rose 12.8%.
In summary, although on-chain activity for memecoins is increasing, their technical and fundamental aspects still lag behind Dogecoin. This gives Dogecoin a stronger momentum for closing up in August.
