Ethereum
Ethereum Meme Coins PEPE and MOG Hit Lifetime Highs on Ether ETF Deposit Approvals
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Two tokens in the Ethereum ecosystem, PEPE and MOG, have reached new highs thanks to approvals for ether ETF deposits in the United States, with traders treating them as beta bets.
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Open interest in token futures has increased, suggesting new capital is entering the market, although the long/short ratio for PEPE indicates traders are betting against further price increases.
Two tokens in the Ethereum ecosystem hit record highs on Monday, fueled by last week’s approval of major Ether {{ETH}} exchange-traded fund (ETF) deposits in the United States, which persuaded some traders to consider tokens same as beta bets.
Frog-themed pepe {{PEPE}} and cat-themed mog (MOG) surged 11% and 45% respectively in the past 24 hours, as a beta bet story showed no no signs of slowing down. A beta bet is a way to gain exposure to a primary asset by investing in associated networks or protocols. Trading volumes for spot and forward PEPE reached more than $1.8 billion, compared to a more typical range of $400 million to $600 million.
The gains came as ether rose nearly 5% over the same period, leading the advance among major tokens as bitcoin {{BTC}} lost 1%. The CoinDesk 20 {{CD20}}, an index of the largest tokens minus stablecoins, lost 0.3%.
MOG jumped 45% in the last 24 hours. (DEXTools)
Futures data shows that open interest in the instruments tracked by Pepe and Mog has increased over the past 24 hours. PEPE’s open interest increased from $550 million to $720 million last week, while for MOG the figure increased from $5 million to $8.3 million. Rising open interest rates are seen as a sign of new capital entering the market, which can portend further price volatility.
However, a long/short ratio for PEPE is skewed toward the bears at 54%, according to Coinalyze data, showing traders are shorting or betting against further price increases.
As CoinDesk reported last week, traders are viewing PEPE and MOG as a way to gain exposure to ether. A rally in both tokens began as analysts increased the odds that Ether ETFs would be approved for trading in the United States.
PEPE even zoomed in on the 20 largest tokens with a market capitalization of over $6 billion, attracting some of the earliest investors. millions of dollars on an initial purchase of just $460.
Since 2023, meme tokens – generally considered to have no intrinsic value, but nonetheless enjoy enormous success – have recently risen to prominence as a beta bet on the ecosystem they are based on.
Multiple coin tokens based on Solana increased from December to March as the network’s SOL tokens took off – contributing to the growth of the ecosystem and attracting attention. Also in December, the Avalanche Foundation, a nonprofit organization that manages the Avalanche blockchain, said he would invest in meme tokens built on the network in recognition of the online culture and memetic value these tokens can generate among investors.