PEPE vs. BONK: Memecoin Market Shift?
Memecoin Market Rebounds, BONK Leads the Pack
The memecoin market, after a period of stagnation, has experienced a significant resurgence, reclaiming a $60 billion market cap with a 7.10% increase and nearly 80% growth in 24-hour volume.
While the overall market is up, performance varies widely. BONK stands out, achieving 30% monthly gains, contrasting sharply with the lagging performance of other legacy memecoins like PEPE.
BONK's Breakout and PEPE's Potential
BONK's recent rally, from a low of $0.00001278, shows a near 90% increase, breaking through key resistance levels. This strength contrasts with PEPE's 30% bounce from its $0.00000830 base. This divergence is also visible in the BTC pairs; BONK/BTC broke through its resistance zone, while PEPE/BTC remained compressed below a declining trendline.
Source: TradingView (BONK/BTC)
This isn't just a short-term fluctuation. In late June, BONK saw daily active addresses surge by over 180%, with new wallet creation up 140% week-over-week. Activity on Bonk.fun also spiked.
While BONK rallied, PEPE experienced a 16% drop during this period. However, with BONK potentially nearing its peak, the question remains: Can PEPE capitalize on the next capital rotation?
Risk-On Sentiment and Capital Rotation
The shift toward a risk-on sentiment is driving capital rotation within the memecoin market. With Bitcoin's price discovery, investors are seeking high-beta assets. PEPE is showing early signs of benefitting from this shift, with an 11% increase in under 72 hours, while BONK faced a retracement after reaching a resistance level, at which realized profits reached a five-month high of $11.7 million.
Source: Glassnode
PEPE's on-chain activity also shows promise: 10,000 new addresses in early July, pushing total holders to an all-time high of 11.42 million. This activity correlates with a breakout above the $0.000010 level and a bullish PEPE/BTC reversal.
With BONK potentially cooling off and risk appetite returning, PEPE could be well-positioned to lead the next memecoin market cycle. However, this remains speculative.
Disclaimer: This analysis is for informational purposes only and does not constitute financial advice. Investing in cryptocurrencies involves significant risk.