After 2,400% growth in 2023, PEPE holders switching to new meme coin

There has been a decisive shift in the meme coin market, as holders of Pepe (PEPE) are now migrating to new contender Sponge V2 (SPONGEV2). Sponge V2 is the next iteration of the popular Sponge (SPONGE) meme coin and has seen more than 5 billion tokens staked since it was announced in December.

The Sponge V2 innovation

The original SPONGE surged by almost 1,000% after launching on Uniswap in May.

At its peak, SPONGE hit a market cap of $100 million and had over 13,000 holders worldwide.

Although this peak was short-lived, SPONGE managed to maintain solid community backing throughout 2024, even as the token’s price fell dramatically.

Now, the Sponge team is back and looking to reignite the spark with SPONGEV2.

One key draw is the introduction of a play-to-earn (P2E) racing game that will allow players to earn SPONGEV2 through engaging gameplay mechanics.

This combination of gaming and financial incentives is expected to expand SPONGEV2’s appeal beyond just speculation.

According to Sponge V2’s whitepaper, there will be a free and paid version of the game, with monthly leaderboards adding an extra layer of competition for players.

Stake-to-bridge mechanism for Sponge V2

The development team has initiated a “stake-to-bridge” setup where holders of the original SPONGE token can permanently lock up their holdings and earn SPONGEV2 as yield.

The the annual yield is over 310% – with more than 5 billion tokens staked.

Once the staking period ends, stakers can claim their accrued SPONGEV2 tokens through the sponge.vip website.

Additionally, developers intend to list SPONGEV2 on Uniswap to provide broader accessibility and boost liquidity.

Several influencers, including YouTuber Jacob Bury, back the token to rally on listing.

PEPE holders switching to SPONGEV2?

Due to the momentum of SPONGEV2, some PEPE holders are making the switch and investing in the SpongeBob-themed token.

While PEPE saw impressive gains exceeding 2,400% last year, the token has stagnated since October due to its lack of utility.

On the other hand, SPONGEV2 has clear utility through its P2E racing game integration.

Additionally, PEPE could be considered at the “mature” phase of its lifecycle, meaning the exponential returns seen last year are likely a thing of the past.

In contrast, SPONGEV2 hasn’t yet launched, so the potential for rapid growth remains untapped.