Memecoins
Dump UNI, buy PEPE: are these memecoins on DeFi?
- A whale sold all its UNI to buy 329.3 billion PEPE.
- PEPE holders were growing at a faster rate than UNI.
According to market analysis by AMBCrypto, it appears that traders are convinced that DeFi tokens may not replicate the type of performance they had during the 2021 bull cycle.
Evidence of this has been demonstrated in the past. On April 30, another piece of evidence emerged: a whale released all its waste. Uniswap [UNI] tokens. What did he do instead? He accumulated 329.3 billion Pepe [PEPE] and removed it from Binance.
However, it is important to note that said traders made $7 million from holding UNI. But the abandonment of tokens in the early stages, while altcoins did not have their expected season, indicates a decline in confidence in UNI’s potential.
No PEPE, no presentation
Furthermore, the accumulation of PEPE suggests bullish conviction in long-term value. However, these decisions may not surprise anyone who has “followed the money.”
The price performance of both tokens was also proof of memecoin’s dominance in the market. At press time, PEPE’s annual performance was up 420%.
Source: CoinMarketCap
UNI, on the other hand, changed hands at almost the same price as at the start of the year. Despite this data, the market capitalization of DeFi tokens was $104.48 billion. For Memecoins, it was $49.50 billion.
However, this difference does not reflect a clear picture since the latter has recorded better growth over the past year. Furthermore, a look at the number of holders watch that UNI had more.
While the number of PEPE holders was 211,000, that of UNI was 381,000. But as with market capitalization, the figures do not give an explicit vision of the situation.
Source: Santiment
UNI could strengthen, but not as much as…
But if you look closely, you will realize that the pace of PEPE in attracting more holders is faster than that of UNI. A simple interpretation of this implies that the DeFi narrative might not be one of the best to follow this cycle.
However, this does not mean that market sentiment will not change. According to the insight, AMBCrypto also looked at weighted sentiment.
This metric uses social volume to measure the perception of projects in the market. At the time of writing, the balanced sentiment of PEPE and UNI was positive.
While PEPE was 0.45, UNI was 0.16, reinforcing the idea that most traders are bullish on memecoin rather than the latter.
Source: Santiment
Furthermore, the feeling disparity is not to say that UNI will not experience a notable recovery.
Realistic or not, here it is Market capitalization of PEPE in terms of UNI
But if history, financial flows and trend stories are anything to go by, PEPE could continue to surpass UNITED.
And the most important thing is that it won’t be a short kilometer. In a very bullish scenario, PEPE could surpass UNI by an additional 200%. While this may not be the case now, it seems achievable in the coming months.