Meme coins like Dogecoin, Shiba Inu, Floki and PEPE have undoubtedly been one of the best and at the same time riskiest ways to make a lot of money in the crypto market in the last few years and months. But how will the landscape of meme coins change in the coming bull cycle? Two well-known crypto analysts have put forward their theses for the battle of the meme coin giants.
Dogecoin Vs PEPE: The Best Bet For The Next Cycle?
Crypto analyst Miles Deutscher is in PEPE’s ring corner. He believes PEPE will outperform the veteran meme coin DOGE in the next cycle. For this claim, Deutscher has several reasons.
First, the analyst points to the underwater thesis, which refers to the percentage of all cryptocurrency holders and their profit/loss ratio. The theory states that if a larger amount of holders is “underwater”, meaning at a loss, the selling pressure on the way up will be higher because more investors will dump their coins (at breakeven).
As Deutscher notes, fewer PEPE holders are currently underwater compared to Dogecoin holders. This means PEPE holders will have less selling pressure on the way up. Furthermore, lower multiples are needed to reach the previous all-time high (2.8x vs. 12x).
Another argument in favor of PEPE according to Deutscher is: “People are more fatigued with the DOGE meme, Pepe feels fresher and generally more organic/liked as a meme.” Moreover, less capital is also needed to pump up the price of the frog coin. The 14-fold discrepancy in terms of market capitalization means that much less liquidity is required to move the price relative to DOGE.
However, popular analyst @Tree_of_Alpha has the opposite theory. He believes Dogecoin investors will write bigger profits than Pepecoin holders in the next cycle:
I’m bearish on all already-trading memecoins vs Doge.
Imo there’s two:
-the OG one (DOGE)
-everything else
According to the analyst, there is no reason to be invested in any of the copycats when they’re not flavor of the month any more. “Shib, Pepe, Floki, etc. all bound to trend to 0 on Doge ratio”.
According to Deutscher, the thought experiment is super interesting. In response to Tree of Alpha, he added that DOGE has even more arguments. For example, the first of all meme coins is a Proof of Work (PoW) coin and is therefore safe from enforcement actions by the US Securities and Exchange Commission.
Moreover, Dogecoin has been around since 2013, “it’s even older than Tether. PEPE is still an unknown” and has the most listings and brand recognition. Other users also added that Dogecoin still has one of the most notable backers in Elon Musk.
Nevertheless, Deutscher stands by his thesis for PEPE. It is important to note, however, that the analyst does not believe that PEPE will “flip” (overtake) DOGE in the ranking by market capital. Btw, Deutscher expects “the next major-alt season” with the Bitcoin Halving in early 2024.
On a weekly basis, PEPE was the clear winner among the two meme coins at press time. While PEPE has risen by 71.4% in the last seven days, DOGE was only able to gain 7.3%. Dogecoin still needs to break through resistance at $0.069 to avoid being at risk for further price discovery down south.
Featured image from Binance, chart from TradingView.com
