Crypto traders expect Pepe, the popular meme coin, to hit a market capitalization of $10 billion ahead of Dogwifhat.
Pepe (PEPE) has a 66% chance of achieving a fully diluted valuation of $10 billion ahead of Dogwifhat (WIF), according to a Polymarket poll.
To reach a $10 billion valuation, Pepe, which currently has a market cap of $3.59 billion, would need to rise by 178% from its current level. While this is a challenging target, Pepe has already risen by over 450% this year, making it a possibility.
On the other hand, Dogwifhat has a longer way to go to reach a $10 billion valuation, as it was valued at $1.8 billion on Aug. 9. It needs to rise by another 455%, on top of the 975% it has gained this year.
Meme coins like Pepe and Dogwifhat have performed well this year, boosted by the strong performance of Bitcoin (BTC) and demand from retail traders.
In most cases, small traders prefer investing in these tokens because of their low prices compared to big brands like Bitcoin and Ethereum (ETH). The thinking is that one can buy more tokens since most meme coins trade in the pennies. They also have a higher chance of doubling in value than Bitcoin given its market cap is now solidly above $1 trillion.
Cryptocurrencies could continue rising
While cryptocurrencies have pulled back in the past few months, some analysts believe there could be further upside this year. Notably, Grayscale expects Bitcoin to retest its all-time high if the US avoids a recession.
In a statement in June, Michael Novogratz predicted that Bitcoin would rise to $100,000 if it breaks above the year-to-date high of $73,800. Meme coins like Pepe and WIF will likely rise further if that prediction plays out as expected.
A likely catalyst that could push Pepe above a $10 billion market cap is the Federal Reserve, which is expected to start cutting interest rates as soon as September due to the deteriorating labor market. The CME Fed Tool predicts a 0.50% rate cut in September, followed by two more 25 basis point cuts in the final two meetings of the year.
Fed rate cuts are expected to incentivize investors to shift capital from lower-risk funds to riskier assets, especially meme coins and more speculative crypto projects.
