The Reason Behind PEPE’s Weak 2025 Performance and What’s Next for the Memecoin

Pepe (PEPE) was one of the standout tokens during last year’s memecoin craze. Inspired by the popular internet meme character Pepe the Frog, PEPE quickly gained traction among cryptocurrency investors.

Over 2024, the PEPE price surged by 1,320%, making it one of the top-performing assets of the year. However, since reaching its all-time high of $0.00002639 on December 9, 2024, the memecoin’s value has been on a steady decline reaching $0. 000009 as of February 20, 2025.

Why is PEPE underperforming compared to other cryptocurrencies in 2025, and what could be next for the project?

What Happened to the PEPE Price in 2025?

Since January 1, 2025, PEPE’s price has dropped significantly, falling over 52.5% from $0.00002037 to $0.000009471 as of February 20. From its all-time high on December 9, 2024, the loss is even more substantial at 64.11%.

According to Binance’s technical analysis, on the four-hour time frame, the memecoin is trending bearish, with both the 50-day and 200-day moving averages pointing downward. This suggests a continued price decline in the near future.

In contrast, other top memecoins like Dogecoin (DOGE) and Shiba Inu (SHIB) have not experienced as steep losses as PEPE this year, with YTD ROIs of -19.66% and -24.05%, respectively. On the other hand, some newer meme tokens like Official Trump (TRUMP) have delivered solid returns, with the US president’s coin nearly doubling in value since the start of the year.

It’s not just PEPE struggling—memecoins as a whole have been hit hard. The broader crypto market has also suffered, with 13 out of the top 20 digital assets experiencing double-digit losses over the last 30 days. Memecoins, in particular, have been impacted the most, with even larger-cap tokens dropping by over 20% during the same period.

Why Is PEPE Lagging Behind Other Cryptocurrencies?

One major reason for PEPE’s steep decline is the broader downturn in the memecoin market, which has been heavily impacted by the overall crypto price crash. Established tokens like DOGE and SHIB have somewhat mitigated their losses due to their larger market caps and stronger brands. Meanwhile, some newer players like TRUMP and MEOW have posted positive YTD gains, but the majority of meme tokens have seen significant declines in 2025.

The crypto market’s recent bearish trend is largely attributed to growing investor fears of a US-China trade war. Trump’s 10% tariffs on Chinese imports and Beijing’s retaliatory tariffs have heightened economic uncertainty. The situation escalated further with the US president’s 25% tariffs on steel and aluminum, negatively affecting financial markets, including cryptocurrencies. Since memecoins like PEPE are largely driven by hype and speculation and lack intrinsic value or strong use cases, they are more vulnerable to negative market sentiment, leading to significant price drops.

Interestingly, PEPE continued to fall despite getting listed on a major Japanese cryptocurrency exchange. The token saw a brief 15.7% price surge following the announcement on January 30, but it quickly declined again, suggesting that overall market sentiment outweighed the short-term hype from the exchange listing.

What’s Next for PEPE?

Based on its performance this year, the state of the crypto market, and Binance’s technical analysis, PEPE’s price is expected to continue its downward trend until it finds a bottom. However, a potential shift in US digital asset regulations could change the market sentiment to positive, even amidst fears of a global trade war.

Trump has already signed an executive order to initiate the creation of a national BTC stockpile and replaced SEC Chair Gary Gensler with Mark Uyeda as Acting Chairman until Paul Atkins is confirmed by the Senate. Both Uyeda and Atkins are known for their pro-crypto stance, which is in contrast to Gensler’s strict regulatory approach. Uyeda has already established a Crypto Task Force to create a transparent digital asset regulatory framework. This could bring more regulatory clarity, promote innovation, and potentially trigger a new cryptocurrency bull run.

However, until regulatory changes materialize, PEPE’s outlook remains uncertain as it faces stiff competition from both established and emerging memecoins. To regain its momentum, PEPE needs to find new ways to capture investor interest. This could be achieved through strategic partnerships, expanding its use cases, or launching community-focused initiatives.

Despite its current challenges, PEPE still has a loyal community and strong brand recognition, which could help it navigate the bearish market. The memecoin will need to leverage these strengths while adapting to the evolving crypto industry to remain relevant and competitive.