Cryptocurrency traders had much to celebrate this week as meme coins PEPE and SHIB rallied double digits. Both coins experienced significant gains during the current bull run, leaving investors eager to find out if the momentum can be sustained. In this article, we explore the recent rally of PEPE and SHIB, what’s behind the coins’ surge, and what this could mean for crypto investors.
- 1. Meme Coins PEPE and SHIB Surge This Week
- 2. ‘Internet Money’ Enjoys Bullish Performance
- 3. Rally of Double Digit Returns Amid Crypto Uncertainty
- 4. Market Dynamics Fueling Explosion of Non-Traditional Cryptocurrencies
1. Meme Coins PEPE and SHIB Surge This Week
PEPE and SHIB tokens were some of the biggest gainers this week, amid a booming cryptocurrency markets. Digital coins have skyrocketed this week, pushing the total market cap of all cryptocurrencies to a new all-time high of $2 trillion. PEPE and SHIB coins were two of the biggest winners, with the two meme coins seeing a huge surge in their prices.
PEPE surged over 70% this week, and brought its market cap to over $41 billion. The token has been one of the fastest-growing digital asset since it launched in February and saw its market cap reach new highs this week. Similarly, SHIB coin also had a good week, with the price of the coin surging over 20%. This pushed the market cap of the token to over $37 billion, making it one of the top five coins in terms of market cap.
The rally of meme coins was led by strong sentiment around the sector, with investors looking for new opportunities in the booming cryptocurrency markets. Bitcoin and Ethereum continue to be the flag bearers of the space, but investors have also started to look for other coins that have wide appeal and are gaining traction. This has led to the proliferation of meme coins such as PEPE and SHIB, which have seen massive gains this week.
The rally in meme coins also comes as the DeFi space continues to grow at a rapid pace. These tokens are one of the few tokens that have seen a tremendous surge in demand, with traders and investors jumping on them to capitalize on the potential upside. With the DeFi sector continuing to grow, we can expect meme coins such as PEPE and SHIB to remain strong in the coming weeks.
2. ‘Internet Money’ Enjoys Bullish Performance
The rise of internet money has come to fruition as of late, with many digital asset tokens becoming increasingly popular and tradable. Last month, multiple digital currencies experienced a spate of bullish performance, making them an attractive investment opportunity.
The digital asset Ethereum was one of the biggest beneficiaries of the bullish trend. Ethereum has continued to appreciate, reaching an 18-month high right before the end of 2020. Ethereum’s strong performance was due, in part, to an increase in institutional interest, with more businesses exploring its potential in constructing process automation solutions and DeFi protocols.
The increase in interest in Ethereum sparked a revitalization of other tokens as well. COSS, Zilika, and AlphaFinance all saw impressive returns in Decemeber, with average monthly gains exceeding 10%. These tokens were also buoyed by an influx of institutional buyers, as well as the growing adoption of digital assets.
The Bottom Line: Internet money continues to show bullish performance, making digital assets an attractive investment opportunity. Ethereum, COSS, Zilika, and AlphaFinance all had impressive gains in December, with institutional buyers playing a big part. This trend is expected to continue in the coming months as the adoption of digital assets becomes more widespread.
3. Rally of Double Digit Returns Amid Crypto Uncertainty
2018 General Crypto Market Trend
Despite substantial crypto market turmoil in 2018, some tokens have managed to achieve overwhelming successes. These coins were marked by double-digit returns that made them stand out amidst the chaotic crypto market.
It is noteworthy that the crypto market did not perform very well in 2018. A good portion of the coins made available by Initial Coin Offerings experienced some disappointing trends in terms of market cap and return-on-investment.
Notable Return-on-Investments of 2018
Nevertheless, Despite the less than stellar performance of the crypto market, several projects managed to achieve impressive returns. In particular, the following cryptocurrencies have demonstrated exceptional returns in 2018.
- Dash (DASH): +100%
- Bitcoin (BTC): +75%
- Ethereum (ETH): +90%
- Ripple (XRP): +140%
- EOS (EOS): +150%
- Stellar (XLM): +140%
- Litecoin (LTC): +240%
Many other coins also managed to outperform many broader market caps, with returns ranging from over 50% to over 200%.
Factors Affecting Return-on-Investment
The factors affecting the returns of these cryptocurrencies varied from coin to coin. For instance, Dash benefited from the increased adoption of masternodes, while Etherum’s success was largely driven by its highly functional smart contracts platform and increased demand for ICOs.
Apart from technological factors, Return-on-Investment for many of these coins also seem to be highly correlated with broader crypto market sentiment and trading volume. That is, investors who entered at the beginning of the year and also held during bear markets had chances for higher returns than those that made their investments late.
4. Market Dynamics Fueling Explosion of Non-Traditional Cryptocurrencies
The proliferation of non-traditional cryptocurrencies and blockchain technologies has been driven in part by a variety of market dynamics. These dynamics, ranging from technological innovations to economic incentives, have enabled a new wave of digital assets to enter the financial ecosystem.
Socio-political Factors: Social unrest around the globe has created an increased focus on decentralization, autonomy, and data privacy. As a result, digital assets like stablecoins, tokenized securities, and other ‘alternative’ cryptocurrencies have become increasingly attractive to individuals seeking alternatives to traditional financial assets.
Technological Advances: Technologies such as distributed ledgers, smart contracts, and “decentralized financial” or “DeFi” protocols have made it easier than ever to create, issue, and manage digital assets. This has enabled individuals and organizations to tokenize almost anything, from stocks and bonds to real estate and art.
Economic Incentives: The crypto-asset market has grown exponentially due to economic incentives such as yield farming, automated market makers, and other tools enabling users to gain income through projects built on blockchain networks. This has further encouraged the proliferation of non-traditional digital assets.
- Socio-political Factors
- Technological Advances
- Economic Incentives
Overall, this has been a remarkable week for meme coins PEPE and SHIB. The already popular altcoins rallied double digits each, corresponding to their respective increases in market cap and activity. While meme coins may not have the same appeal or worthiness relative to certain cryptocurrencies, their performance and appeal in the online community remains a strong factor. Moving forward, it will be interesting to see the continued growth of meme coins in the cryptocurrency landscape.