Saad Ullah
Learn how to evaluate $PEPE, $DOGE, and other memecoins with this guide, featuring tips on community strength, token distribution, and liquidity.
Why $PEPE and Other Memecoins Are Gaining Popularity
Memecoins like $PEPE and $DOGE have little utility or inherent value in the crypto space. However, they have risen to prominence for several reasons. These coins often rely on community engagement rather than traditional utility-based coins backed by venture capital. Trading costs are reduced on Layer 1 (L1) and Layer 2 (L2) solutions, like Solana and Arbitrum, and celebrity endorsements further boost their appeal.
Despite their hype, it’s essential to distinguish between quality memecoins and scams. Here are a few key steps to help you navigate the world of memecoins.
$PEPE and $DOGE Communities: Strength Matters
A strong, active community is a crucial factor in identifying a reliable memecoin. To evaluate this, check platforms like X (formerly Twitter), Telegram, and Discord for active engagement. The project team should interact with users, respond to comments, and cultivate a unique identity around the meme. For instance, $PEPE is known for its frog theme, while $DOGE is associated with its famous dog mascot.
If the community around a memecoin is vibrant and cult-like, the chances of long-term success improve.
One key metric to examine is token distribution. Tools like Bubblemaps can help you visualize how tokens are distributed within a memecoin project. A bubble map that shows large, colored, and clustered bubbles means that a few entities hold a significant portion of the supply, which could lead to a dump.
An even token distribution, with dark, unclustered bubbles, is generally a good sign for a memecoin like $PEPE.
$PEPE and $DOGE Token Holders: Look for Growth
An increasing number of token holders is another indicator of a solid memecoin. Use blockchain explorers like Etherscan to track the growth of token holders. A consistent uptrend in token holders suggests a healthy, growing community behind a memecoin such as $PEPE.
For memecoins with a market cap over $100 million, it’s crucial to evaluate both volume and liquidity. A good rule of thumb is to look for trading volume that is at least 8%-10% of the market cap and liquidity levels of 2%-4%. Tools like DexScreener can help you track these metrics for memecoins like $PEPE and $DOGE. High liquidity and volume are critical for maintaining price stability and avoiding price manipulation.
Memecoins with a track record of surviving significant market crashes (up to 80%) are worth keeping an eye on, especially if large holders have not sold off their holdings. For example, $PEPE has weathered market volatility and continues to thrive due to its supportive community and increasing holder count. Always check whether the project still has community backing and stable token growth after a downturn.
Conclusion
While memecoins like $PEPE and $DOGE offer exciting opportunities, they are not without risks. It’s crucial to do your research by analyzing community engagement, token distribution, and liquidity before making any investment. As with all volatile assets, proceed with caution and avoid jumping in without thoroughly understanding the project.
Saad Ullah
