- Over the weekend, ether saw a greater increase in value than bitcoin due to fresh hope for the second-largest cryptocurrency.
- As a result of the clearance of U.S. ether ETF registrations, two Ethereum ecosystem tokens—PEPE and MOG—saw a surge in value and were viewed by traders as beta bets.
- Although the long-to-short ratio for PEPE shows traders are wagering against additional price increases, open interest in token futures surged, indicating fresh money entering the market.
The approval of significant ether (ETH) exchange-traded fund (ETF) filings last week in the United States encouraged some traders to view meme tokens as beta bets, and as a result, two Ethereum ecosystem tokens saw a spike to record highs on Monday.
The beta bet storyline for both the frog-themed PEPE (PEPE) and the cat-themed MOG (MOG) surged 11% and 45%, respectively, over the last day. Investing in associated networks or protocols is a means of obtaining exposure to a primary asset through beta betting.
In contrast to the typical range of $400 million to $600 million, trading volumes for PEPE across spot and futures reached above $1.8 billion.
Ether led the major tokens in the increase during that time, rising about 5%, while bitcoin (BTC) fell 1%.
According to futures data, open interest in mog-tracked and pepe-tracked instruments increased over the previous day. While MOG’s open interest increased to $8.3 million from $5 million last week, PEPE’s increased to $720 million. Increasing open interest is seen to be an indication that fresh capital is entering the market, which could portend further price volatility.
According to Coinalyze statistics, the long-to-short ratio for PEPE is skewed 54% in favor of bearish, indicating that traders are betting against additional price increases by going short.
Traders have been looking at PEPE and MOG as a leveraged way to get exposure to ether. When analysts increased the likelihood that ether ETFs will be permitted for trade in the United States, a surge in both tokens began.
With a market valuation of more than $6 billion, PEPE even shot up into the top 20 tokens, earning millions of dollars for a little initial investment of $460.
Since 2023, meme tokens—which are typically thought to have no inherent worth but nevertheless have enormous fan bases—have gained popularity recently as a beta bet on the ecosystems on which they are based.
When the network’s SOL tokens took off in December and March, a number of Solana-based meme currency tokens saw a spike in value, drawing attention to themselves and fostering ecosystem growth.
December also saw the announcement by the non-profit Avalanche Foundation, which runs the Avalanche blockchain, that it will invest in meme tokens created on the network because of the potential for online culture and memetic value among investors.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
