The price of meme-based cryptocurrency PEPE briefly surpassed the $69,000 mark before experiencing a rapid decline, as investors turned their attention to other fringe tokens offering potentially higher returns. The surge in PEPE and MOG tokens, which also coincided with a 5% increase in ether, came after the approval of key ether exchange-traded fund filings in the United States, leading traders to consider meme tokens as beta bets.
Influx of New Traders
Recently, there has been a growing interest in meme-based cryptocurrencies, with many trading in positive territory. This surge in interest can be attributed to the return of legendary trader Roaring Kitty, who had been absent from the trading world for three years, and the increase in the number of addresses holding meme coins for less than thirty days, indicating a significant influx of new traders entering the market.
Rally and Increased Trading Volumes
PEPE and MOG tokens have been seen as a way for traders to gain leveraged exposure to ether, particularly since the probability of ether ETFs being approved for trading in the US increased. Within the past 24 hours, PEPE and MOG recorded gains of 11% and 45%, respectively. Trading volumes for PEPE reached over $1.8 billion, surpassing its usual range of $400 million to $600 million in spot and futures markets.
Increase in Open Interest and Bearish Betting
Data from futures markets show a significant increase in open interest for instruments tracking PEPE and MOG, indicating new capital entering the market. PEPE’s open interest rose from $550 million to $720 million, while MOG’s open interest increased from $5 million to $8.3 million. However, despite the bullish sentiment, the long-to-short ratio for PEPE leans towards bears at 54%, indicating that many traders are betting against further price increases.
Prominence of Meme Tokens
PEPE has even entered the top 20 largest tokens by market capitalization, surpassing $6 billion. Meme tokens, although often perceived as lacking intrinsic value, have gained prominence as beta bets on their respective ecosystems since 2023.
- The price of meme token PEPE briefly exceeded $69,000 before experiencing a decline
- Traders turned their attention to other fringe tokens offering potentially higher returns
- Increased interest in meme-based cryptocurrencies due to the return of Roaring Kitty and a surge in the number of new traders
- PEPE and MOG tokens surged due to the increased probability of ether ETFs being approved for trading in the US
- PEPE and MOG experienced significant gains and increased trading volumes
- Open interest for instruments tracking PEPE and MOG rose, indicating new capital entering the market
- The long-to-short ratio for PEPE suggests a bearish sentiment among traders
- PEPE entered the top 20 largest tokens by market capitalization and meme tokens have gained prominence as beta bets