The Ethereum ecosystem has witnessed a vibrant surge in prices of tokens such as PEPE coin in the last 24 hours, driven by renewed optimism regarding the approval of Ethereum exchange-traded funds (ETFs) in the US. This positive outlook, supported by Bloomberg analysts who put the rate at a significant 75%, sent shockwaves through the market, where meme coins led the way.
Cryptos like PEPE coin, MOG are on the rise
The most notable winners were Mog (MOG) and Pepe (PEPE), meme coins with thematic ties to popular internet culture. Mog, a cat-themed token inspired by a viral TikTok meme, has skyrocketed by nearly 50%, while Pepe, a reference to the iconic frog meme, has seen a notable increase of over 20%. Launched in 2023, these tokens have gained a foothold in the Ethereum ecosystem, joining established players such as Dogecoin (DOGE) and Shiba Inu (SHIB).
This meteoric rise of meme coins can be attributed to their perceived role as a leveraged bet on the growth of the underlying Blockchain. The market interpreted the update from Bloomberg analysts (a significant increase from the previous 20% approval rate) as a bullish sign for Ethereum. This positive sentiment translated into a market-wide bounce, with Ether gaining over 17 percent and Bitcoin regaining the critical $71,000 mark.
“High beta” movements?
Viro, one of Mog’s core team members, offered insights into this phenomenon in a Telegram interview. He noted that established meme coins often act as “high beta” investments for blockchains’ native token. In simpler terms, price movements tend to be stronger compared to the underlying Ethereum token. According to Viro, Mog has established itself as a prominent player in the Ethereum ecosystem but is trading at a price well below that of its rival Pepe. This price disparity, combined with its growth potential, has likely caused Mog to significantly outperform.
The trend of leveraging meme coins to achieve broader blockchain growth is not unique to Ethereum. The Solana ecosystem witnessed a similar event between December and March; meme coin tokens have seen a surge along with the rise of Solana’s native token, SOL. This interconnectedness highlights the potential of meme coins to contribute to ecosystem growth and attract investor interest.
What further fuels the story is that a recent on-chain transaction involving legendary Pepe investor dimethyltryptamine.eth has garnered a lot of attention. Having turned his $251 investment in PEPE into a staggering $26.9 million (107,000 times earnings), he recently sold some of his assets to acquire another meme coin, WOJAK. This move, while seemingly unrelated, serves as a reminder of the enormous potential returns associated with meme coin investments, even amid a broader market shift.
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