In the ever-evolving world of cryptocurrencies, analysts and experts are continuously making predictions about the future of the market and which coins are likely to outperform others. One such analyst, Miles Deutscher, has sparked intrigue by boldly stating that PEPE, a relatively newer meme currency, will outperform established DOGE in the next cycle. Deutscher’s analysis provides compelling reasons to support his position and sheds light on unique factors that could drive PEPE’s success.
The Underwater Thesis: Less selling pressure and lower multiples
Deutscher introduces the concept of the “Underwater Thesis”, suggesting that PEPE has an advantage over DOGE because there are fewer containers underwater. Underwater means that investors are holding the asset at a higher price than its current value, leading to a possible sell-off to recoup losses.
In this regard, PEPE appears to be in a more favorable position and is experiencing less selling pressure on its way up. Furthermore, Deutscher points out that PEPE only needs to reach a multiple of 2.8x to reach its previous all-time high, while DOGE needs a substantial multiple of 12x. This lower multiple could accelerate PEPE’s journey to new highs.
Fatigue with DOGE Meme and the freshness of PEPE
Another aspect Deutscher is considering is the sentiment surrounding the memes associated with DOGE and PEPE. DOGE enjoys considerable popularity and recognition by the general public. Deutscher argues that the meme fatigue among inventors could work in favor of PEPE. PEPE is seen as a fresher and more organic meme, potentially resonating with a new wave of cryptocurrency enthusiasts and offering a competitive edge over DOGE.
Market capitalization difference: liquidity advantage for PEPE
Dogecoin costs $0.0679236 per unit, with a market cap of $9.50 billion. It has a 24-hour trading volume of $422.73 million and is up 5.72% in value. DOGE’s circulating supply is approximately 139.87 billion.
Meanwhile, PEPE costs $0.0000016 per unit, with a market cap of $620.17 million. Its 24-hour trading volume is $758.46 million and it is up 5.37% in the last 24 hours. The circulating supply of PEPE is about 391,790.00 billion.
Deutscher highlights the significant difference in market capitalization between DOGE and PEPE. PEPE needs much less liquidity to move its price compared to DOGE. This discrepancy means that small investment inflows could potentially have a more pronounced effect on PEPE’s price movement, leading to greater upside potential.
Counter arguments and DOGE’s strengths
Deutscher acknowledges the counterarguments in favor of DOGE. First, DOGE’s longevity since 2013 gives it a significant advantage in terms of surviving crypto market cycles. In addition, DOGE boasts wider crypto exchange listings and greater brand awareness among retail investors. Deutscher also acknowledges the possibility that investors may initially be attracted to DOGE due to its notoriety and established presence in the cryptocurrency space.
One analyst, who takes a pessimistic view of the future prospects of meme coins outside of DOGE, suggests that the meme coins, such as PEPE, Shib, and Floki, despite their individual identities, are ultimately tied to DOGE’s performance and influence. , as DOGE continues to maintain its notoriety and popularity, other meme coins will struggle to maintain their value.
Regardless, while Deutscher acknowledges DOGE’s strengths, he maintains his observation, leaving investors and enthusiasts eagerly awaiting the next meme coin showdown.
