These days, news is about a halving in one of the most popular meme coins of the moment – Pepe Coin. If you’re familiar with crypto, you’ve likely met this term in Bitcoin’s context. A halving represents a recurrent event when the reward mechanism for mining undergoes a change that cuts the recompenses that miners receive for mining specific crypto in two. Things might be a bit confusing in the case of a meme coin like Pepe. Pepe doesn’t use the proof-of-work consensus mechanism that Bitcoin and other mineable cryptos do, so halving something that’s not mineable might sound delusional. Nevertheless, the truth is that mining is supported by several platforms, so that even those possessing a smartphone and a Pepe wallet can join the party and mine for rewards.
PEPE coins will be twice as difficult to mine as they are now, days ahead of the halving. Industry analysts and experts hope for a price revival – or a massive rise, at the very best. If you want to diversify your portfolio this year with it, it’s important to keep a finger on the pulse of Pepe, market trends, and similar indicators. Nevertheless, until the halving is on, let’s assess everything there is to know so you can have the needed knowledge you can’t do without and make more informed decisions – no matter if you’re a holder, miner, or PEPE enthusiast.
What’s Pepe’s halving, again?
For newbies to halvings, this wildly frenzied even represents a procedure where miners’ block rewards are slashed in half, decreasing the rate at which fresh coins break into the market. More exactly, the upcoming halving scheduled for February 4 will drive the current reward of 62,500 coins per block to 31,250. Among the main reasons why this event holds a lot of significance is that halvings have historically been associated with price increases in specific, halved cryptocurrencies. Such events could trigger supply shocks that bring more investors to the table, driving value. As a general rule, decreasing supply combined with growing or even steady demand results in price spikes.
The upcoming reward-slashing event might justify a future price increase if the demand and value of Pepe grow. So far, Bitcoin’s halving events have dominated the headlines and caused its price to reach new zeniths as a result. A coin’s value is associated with increases when it becomes more difficult to mine, for this milestone reduces the existing supply and makes it harder to obtain. Nevertheless, it’s important to note that halvings don’t cause difficulty in procuring any of Pepe’s current supplies. This means that the halving-driven excitement doesn’t always imply boosted value that endures.
Pepe to become more sustainable
PEPE strives to build a name for itself as an affordable and sustainable digital currency, and its upcoming halving could pave the foundation for building that reputation. PEPE employs a block reward system that currently offers 62,500 $PEPE per mined block, yet the halving will cut it to only 31,250 per PEPE block. The reward will be slashed to 15,625 per block when the second halving occurs.
The halving plays a central role in PEPE’s tokenomics. This achievement will cut the asset’s token emission, facilitating the environmental footprint as the search for more energy-efficient mining methods begins. When it comes to Pepe’s standing in the market, the halving may benefit it by creating scarcity and potentially driving its value higher. This highly awaited event may cut $PEPE’s token emissions considerably, possibly leading to scarcity that could consequently send its price soaring. Nevertheless, it’s important to note that oversupply could be avoided with a controlled rate of PEPE releases. This might trigger price changes in PEPE.
Overall, the fixed block reward offers miners a transparent and foreseeable incentive scheme, helping keep the network stable and secure. With controlled releases, the currency aims to transform into a more sustainable economic project. Such an approach may help avoid the rapid inflation that sometimes impacts other cryptos.
What to expect
Pepe, one of the most popular memecoins, has been rising as of late, boasting a price growth of 196% in November 2024. Despite a price drop by the middle of December, the crypto maintained much of its upward headway and didn’t drop anywhere close to its previous value. Momentarily, the leading crypto, Bitcoin, is falling from its peak of a little over $109K, justifying the slumps registered by other cryptos – including Pepe. Nevertheless, that fall is anticipated to be amended sooner or later when Trump reenters the office in a few weeks. That moment is highly expected in the crypto industry as it might harbinger a recovery in crypto prices.
The Pepe halving event is scheduled for February 4, which could mean the coin will increase in value. In the past, halving events for Bitcoin have been colossal news and caused the price to skyrocket as a result. The value could quickly increase as the coin becomes more complicated to mine. This makes the remaining potential supply rarer and more challenging to obtain. However, it doesn’t impact how complex or easy it is to get any of the asset’s existing supply, meaning that the frenzy built due to the approaching of the halving events doesn’t necessarily mean boosted value that sticks.
Endnote
Supposing an upward trajectory, industry analysts might come up with more insights on how nearing halving could be advantageous for PEPE. Nevertheless, there’s room for many changes of dynamics until the halving finishes. Pepe has the potential to spike given the forthcoming halving and the crypto-friendly administration taking control of the government. Yet, nothing can guarantee a specific outcome, all the more in the wildly volatile and speculative market of digital currency.
Do your due diligence and be cautious if you want to invest in PEPE—or any other cryptocurrency, for that matter. Much theory has been spoken, and there’s no telling when the administration will enforce the discussed pro-cryptocurrency framework.
