Ethereum Meme Tokens PEPE and MOG Experience All-Time Highs following Approvals for Ether ETF Filings
In a significant turn of events, two Ethereum-based meme tokens, PEPE and MOG, have reached new peaks due to the recent approvals of ether exchange-traded fund (ETF) filings in the United States. This development has prompted some traders to view these meme tokens as beta bets.
The surge in interest in these tokens is evidenced by the increase in futures open interest, indicating a influx of new capital into the market. However, the long-to-short ratio for PEPE suggests that traders are placing bets against further price increases.
PEPE, a token featuring a frog theme, and MOG, a token featuring a cat theme, have both experienced significant gains, rising by 11% and 45% respectively over the past 24 hours. This surge in prices aligns with the narrative of beta bets, which involve investing in related networks or protocols to gain exposure to a main asset. Trading volumes for PEPE surpassed $1.8 billion, considerably higher than the typical range of $400 million to $600 million.
While these tokens reached new highs, the value of ether also increased by nearly 5% during the same period, outperforming major tokens such as bitcoin, which experienced a 1% decline. The CoinDesk 20 index, which excludes stablecoins, saw a minor dip of 0.3%.
Data from futures indicates a significant rise in open interest for PEPE and MOG-tracked instruments over the past 24 hours. PEPE’s open interest increased from $550 million to $720 million, while MOG’s open interest rose from $5 million to $8.3 million. This rise in open interest is seen as an indication of new capital entering the market and could potentially lead to increased price volatility.
However, the long-to-short ratio for PEPE is currently skewed in favor of bears, at 54%. This suggests that traders are betting against further price rises and taking short positions.
Traders have recently viewed PEPE and MOG as leveraged ways to gain exposure to ether, particularly as analysts have increased the likelihood of ether ETFs being approved for trading in the U.S. These tokens have seen a rally in their prices since then.
PEPE has even climbed into the top 20 largest tokens by market capitalization, reaching over $6 billion, resulting in significant profits for early investors who purchased the token for as little as $460.
In recent years, meme tokens, which are typically considered to have no intrinsic value but maintain a massive following, have gained prominence as beta bets on the ecosystems they are based on. Notably, various Solana-based meme tokens experienced significant surges from December to March, aligning with the growth of the network’s SOL tokens and capturing attention. In December, the Avalanche Foundation announced that it would invest in meme tokens built on the Avalanche blockchain, highlighting the influence and memetic value such tokens hold for investors.