Memecoins in 2024: DOGE, SHIB, and PEPE Under Review

Key Insights:

• Dogecoin’s short-term traders profit, while long-term holders remain in the red in 2024.
• Shiba Inu struggles as retail traders exit, with sentiment and social activity steadily declining.
• Pepe’s market cap rises, but sentiment drops as retail traders continue to accumulate amid volatility.

Memecoins have gained traction due to their origins in internet culture and social media influence. Despite their lighthearted beginnings, these assets have seen large fluctuations in price, often fueled by market speculation and social sentiment. Among the most popular of these coins are Dogecoin (DOGE), Shiba Inu (SHIB), and Pepe (PEPE). While their prices often experience rapid changes, these assets have created an entire sector based on humor, speculation, and crowd emotions.

🐶 Memecoins have been on their usual up and down rollercoasters, with speculation and crowd sentiment playing a major factor. Our latest insight breaks down top on-chain & social indicators for DOGE, SHIB, and PEPE to break down what's next: https://t.co/lgmamoZfVy pic.twitter.com/13snBawjYC

— Santiment (@santimentfeed) September 11, 2024

Dogecoin: Short-Term Gains, Long-Term Losses

Dogecoin ($DOGE), which originated as a joke in 2013, holds a significant position in the memecoin market. However, its recent performance has been mixed. Data from on-chain analysis platform Santiment shows that short-term traders—those who have been active within the past 30 days—have seen minor profits, with average returns of +1.7%. In contrast, long-term traders, who have held onto their assets for the past 365 days, are down near their lowest levels in a year, with a -20.8% drop.

DOGE’s price has seen a sharp decline since peaking in mid-April, leading to speculation about a potential rebound. Some analysts suggest that a recovery may occur, bringing long-term traders back to break-even. Retail traders, meanwhile, have shown hesitance throughout 2024. Wallets holding less than 1 million DOGE currently account for 11.8% of the coin’s supply, a figure that has remained unchanged since the start of the year. This indicates a lack of FOMO (fear of missing out) among smaller investors, which is often seen when large-scale buying occurs.

There was a brief surge in interest in mid-August, coinciding with the launch of Tron’s SunPump platform. Although DOGE benefited from this news, its price remained relatively stable. Currently, discussions about Dogecoin make up just 1.28% of overall cryptocurrency conversations, reflecting a neutral sentiment in the market. If FUD (fear, uncertainty, and doubt) begins to take hold, some analysts believe this could trigger a turnaround in DOGE’s price.

Shiba Inu: Struggles Continue for Retail Traders

Shiba Inu ($SHIB), another well-known memecoin, has had a rough year in comparison to Dogecoin. The average 30-day trading returns for SHIB are down -1.1%, and its long-term traders are seeing losses of -31.7%. This poor performance suggests that Shiba Inu could see potential gains if Bitcoin stabilizes and the broader altcoin market rebounds.

Retail traders in particular have been exiting Shiba Inu in 2024. Wallets holding less than 1 billion SHIB now control the smallest percentage of the coin’s supply since November 2022. This trend highlights the growing sense of FUD on the Shiba Inu network, as larger wallets holding over 1 billion SHIB now dominate the market.

Social engagement with Shiba Inu has also been on a steady decline since late July, which correlates with the diminishing interest from smaller traders. The drop in discussions and market activity has led to an overall negative bias in sentiment toward SHIB. This reflects the frustration and indifference felt by traders who have seen their investments lose value throughout the year.

Pepe: Retail Confidence Remains Strong Despite Decline

Pepe ($PEPE), a newer memecoin launched in April 2023, has also experienced significant volatility. Unlike DOGE and SHIB, however, PEPE’s market cap has remained relatively high, with a 50% increase despite the overall downturn in the cryptocurrency market during 2024. However, in the short term, 30-day traders have seen losses of -0.8%, while long-term holders are still up by +23.8%. This suggests that some traders are waiting for further price drops before re-entering the market.

Interestingly, retail traders have shown considerable confidence in Pepe over the past few months. Wallets holding less than 1 million PEPE have been steadily increasing their share of the supply, using price dips as buying opportunities. While this might seem like a positive sign, some analysts are cautious, pointing out that the ideal scenario would involve retail traders stepping back while larger investors accumulate more.

Despite the continued retail accumulation, sentiment surrounding Pepe has turned highly negative. This shift may be due to the fact that, unlike DOGE and SHIB, many PEPE traders have not experienced significant price declines until recently. The decline in conversations about PEPE since its peak in late July suggests that traders have become more reserved, waiting for the next price movement before taking action.