What happened?
PEPE, a popular cryptocurrency, has been following a triangle pattern since March, gradually narrowing the gap with SHIB, the second-largest meme coin. Over the last year, PEPE has gained 20%, while SHIB has slipped 17%, indicating contrasting momentum between the two coins. Now, PEPE is only 77% away from flipping Shiba Inu in market cap, a plausible scenario as factors continue to align in its favor.
Who does this affect?
This development impacts investors and enthusiasts of cryptocurrencies, particularly those engaged with meme coins like PEPE and SHIB. With PEPE potentially outpacing SHIB in market cap, investors may have to recalibrate their strategies and expectations. Additionally, the potential increase in demand for PEPE due to rate cuts, corporate treasury adoption, and spot exchange-traded funds (ETFs) could also influence the broader cryptocurrency market.
Why does this matter?
The shift in market dynamics matters because it highlights the volatile and unpredictable nature of cryptocurrency markets. It underscores the potential for smaller or lesser-known coins to challenge established ones in terms of market cap. If PEPE flips SHIB, it could alter investor sentiment and trading strategies. Furthermore, these developments could impact the broader market by stimulating demand for other risk assets like PEPE.