Key Takeaways
How do PEPE and WIF compare with one another?
The trading volume and social sentiment trends post-correction were examined, and PEPE appeared to have an advantage on these metrics.
Which memecoin could rally higher in the coming weeks?
A recovery would be dependent on Dogecoin and a bullish BTC, but the smaller memecoin dogwifhat might stand to make more gains, in case of a market reversal.
The memecoin sector was pushing toward the $60 billion market cap mark.
The sector had been at $74 billion earlier this month, but the flurry of selling around and after the 10th of October’s liquidation event has made recovery tough.
Source: CoinMarketCap
Following the correction, Pepe [PEPE] has rallied a modest 6.42%, while dogwifhat [WIF] was up nearly 18.8%, nearly thrice PEPE’s post-correction gains. Do other metrics measure favorably for WIF?
PEPE vs. WIF- Popularity vs. Potential
Source: Santiment
Since the correction on the 10th of October, the trading volume of both PEPE and WIF has fallen steadily. The daily trading volume was at $2.09 billion and $741 million for PEPE and WIF, respectively, on the 11th of October.
It has fallen to $333 million and $132 million for PEPE and WIF, respectively. The Social Volume of PEPE considerably outweighed that of WIF.
Despite the sharp fall-off, the higher trading volume for PEPE was to be expected. As a larger-cap memecoin, it is more popular. If the dogwifhat trading volume catches up to or exceeds that of Pepe’s, it would be a sign of strong market conviction.
However, it should be noted that memecoins tend to run together with Dogecoin [DOGE]. Hence, traders and investors should also be watching DOGE for clues on navigating the memecoin market trends.
Source: Santiment
Surprisingly, the Daily Active Addresses of WIF have been consistently higher than those of PEPE. On-chain, this reflected steady user engagement for the smaller memecoin. Meanwhile, the Weighted Sentiment was bearish for both.
The sentiment behind WIF was more deeply negative than that of PEPE. This was puzzling, since both coins have shed 40% in value since the 14th of September.
Overall, neither coin showed signs of recovery. The bigger rebound post-correction and the higher daily active addresses showed WIF had an edge in terms of relative strength. Its weak Weighted Sentiment could also work to the smaller memecoin’s advantage.
The tokens with a more bearish outlook would catch a greater share of market participants offside in case of a rally, pushing prices even higher.