Ethereum Memecoins Are Rising After ETF Approval
Ethereum memecoins PEPE and MOG received ath following the approval of the Ethereum ETF.
With the approval of Ethereum (ETH) exchange-traded fund (ETF) applications filed in the United States last week, two Ethereum ecosystem tokens, PEPE and MOG, rose to new highs as they were considered beta bets by traders.
Over the weekend, Ether rose more than Bitcoin on renewed optimism for the second-largest cryptocurrency.
Two Ethereum ecosystem tokens, frog-themed pepe (PEPE) and cat-themed mog (MOG), soared to record highs on Monday following approval of key ether ETF applications in the US, prompting some traders to consider meme tokens as beta bets.
The beta betting story hasn’t slowed down, with PEPE and MOG rising by 11% and 45% respectively in the last 24 hours. A beta bet is a way to gain exposure to the underlying asset by investing in relevant networks or protocols. PEPE’s spot and futures trading volumes reached $1.8 billion, compared to a more typical range of $400 million to $600 million.
Futures data shows that open interest in instruments tracking PEPE and MOG has increased over the last 24 hours. PEPE open interest increased from $550 million last week to $720 million, while for MOG this figure increased from $5 million to $8.3 million. Increased open interest is considered a sign of new money entering the market, which can signal future price fluctuations.
However, according to data from Coinalyze, the long to short ratio for PEPE is 54% in favor of the bears, indicating that traders are betting on future price increases by taking short positions. PEPE even broke into the top 20 tokens with a market cap of $6 billion, earning early investors millions of dollars with an initial investment of just $460.
Since 2023, meme tokens, which often have no intrinsic value but still have large followings, have emerged as beta bets no matter what ecosystem they are built on.
Many Solana-based meme coins rose from December to March with the rise of the SOL token – contributing to ecosystem growth and attracting attention. Also in December, the Avalanche Foundation, a nonprofit organization that maintains the Avalanche blockchain, announced it would invest in meme tokens built on the network, recognizing the fact that online culture and memetic value among investors can be driven by such tokens.
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