Analysis of investing in PEPE Coin with the expectation of reaching $1
1. Market capitalization:
• Currently, the price of PEPE is 0.0000186 USD, with a circulating supply of approximately 420.67 trillion
• If PEPE reaches 1 USD, the market capitalization will be:
• 420.67 trillion USD far exceeds the total global GDP (estimated at around 105 trillion USD in 2024). This is an unrealistic market cap.
2. Required growth rate:
• From the current price of 0.0000186 USD to 1 USD, the required growth rate is:
• This is an enormous number and nearly impossible to achieve in reality, unless there are breakthrough factors.
3. Comparison with Bitcoin:
• Bitcoin, the largest digital asset, only reached a market cap of around 1.2 trillion USD at its peak.
• For PEPE to reach 1 USD, its market cap would need to be more than 350 times the peak market cap of Bitcoin, which is not feasible considering global attention and cash flow.
4. Other risks:
• Speculation: PEPE is a type of memecoin, which tends to depend more on market sentiment than on actual value.
• Price drop potential: The excessively large supply and lack of real-world application make PEPE's price susceptible to decline without strong speculative waves.
• Supply adjustment: If the development team or community decides to reduce supply through measures such as token burning, the necessary market cap to reach 1U may decrease.
Conclusion:
• The possibility of PEPE reaching 1 USD is unrealistic considering the necessary market cap, enormous supply, and investment sentiment.
• If you want to invest in PEPE, consider short-term profit targets rather than waiting for unrealistic price levels like 1U.