Why Does PEPE Still Attract Liquidity Despite Being a Memecoin?

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PEPE continues to attract deep liquidity because it functions as a high-beta proxy for market sentiment, particularly during speculative rotations. Advanced traders often treat PEPE as a volatility instrument rather than a long-term fundamental asset, using it to express risk-on views when liquidity expands or when Bitcoin dominance stalls.

Additionally, PEPE benefits from reflexive liquidity loops: high volatility drives volume, volume attracts market makers, and tighter spreads reinforce tradability. This dynamic makes PEPE one of the few memecoins that institutions and professional traders can realistically deploy size into without extreme slippage.