Within the cryptocurrency landscape, memecoins have emerged as key players, showcasing strong performance in the first half of 2024. The impressive results during this period have attracted a surge of investors looking to capitalize on potential profits. As the market anticipates an upcoming recovery in Q4, it raises the question of how these memecoins have stacked up against each other so far.
This analysis aims to examine the profitability for investors in Dogecoin [DOGE], Shiba Inu [SHIB], and Pepe [PEPE] to provide a comprehensive comparison.
Profits Comparison: DOGE vs. SHIB vs. PEPE
When looking at the year-to-date performance, PEPE has notably outperformed the more established memecoins, DOGE and SHIB. PEPE, themed around frogs, demonstrated an increase of over 400%, surpassing the gains of 24% for SHIB and 10% for DOGE.
However, during Q3, market downturns affected PEPE more severely compared to SHIB and DOGE. While PEPE experienced a 35% decline, SHIB saw a 22% drop, and DOGE exhibited a relatively lower decrease of 17%.
In essence, PEPE exhibited higher volatility than DOGE and SHIB, achieving significant gains but also enduring sharper declines.
Valuations and Recovery Potential of Memecoins
According to Sentiment’s Market Value to Realized Value (MVRV) metric, investors holding these memecoins over the past three months have experienced unrealized losses.
The negative MVRV readings indicate that the memecoins are undervalued and potentially discounted. This raises the question of which memecoin could offer the most significant upside potential.
An analysis of the daily price charts suggests that SHIB and DOGE have retraced most of their gains for the year, returning close to their levels from March.
In contrast, PEPE has maintained stability above the Q2/Q3 support levels despite market downturns.
By holding above its Q2 support level, PEPE appears to be in a strong position for a robust recovery, particularly if overall market sentiment improves.
If this scenario unfolds, PEPE investors may continue to outperform those invested in DOGE and SHIB. However, it’s worth noting that PEPE experienced more significant drops during market downturns.
In summary, investors in PEPE have enjoyed superior returns compared to their DOGE and SHIB counterparts thus far in the year. PEPE’s gains of over 400% represent a substantial increase, surpassing SHIB by 40x and DOGE by over 15x.
From a market structure perspective, PEPE seems well-positioned for a robust recovery after successfully defending the crucial Q2/Q3 support zone. This contrasts with DOGE and SHIB, which have retraced to their March levels.