Join the Meme Craze: PEPE Dominates Market with Ether Approaching $4K
The Rise of Meme Coins: A Result of Bitcoin and Ethereum’s Growth
In the past 24 hours, meme coins, such as PEPE, SHIB, and DOGE, experienced a surge of up to 26%. This increase is believed to be a “spillover effect” from the rise of Bitcoin and Ethereum.
Since late February, traders have been using meme coins as a way to bet on the growth of Ethereum. The demand for ETH has been escalating since mid-January as investors anticipate the approval of a spot ETF in the United States.
Meme Coins Outperforming ETH
In the midst of Ethereum’s rise towards $4,000, meme coins like PEPE, SHIB, and DOGE have all jumped significantly. PEPE experienced the most substantial increase, with a 26% spike in value. Both DOGE and SHIB also recovered from their losses on Thursday and saw a 10% increase in value. Overall, the meme coin category on CoinGecko saw an average growth of 8.6%, while CoinDesk 20, a broad index of various tokens, saw a 2.53% rise.
Traders using Meme Coins as a Proxy Bet on ETH’s Growth
According to Slater Heil, co-founder and COO of DeFi platform Blueberry Protocol, the rising prices of Bitcoin and Ethereum have caused a “spillover effect.” This effect has led to a surge in coins deployed on Ethereum and Solana, including meme coins. Heil also commented that investors are taking advantage of the bullish market conditions, and meme coins are an attractive option for them. However, he cautioned that in the short to medium term, there may be a shift back to “fundamentally driven” altcoins.
Rising Demand for ETH due to Speculation of a Spot ETF Approval
The demand for Ethereum began to increase in mid-January as investors speculated that it would be the next major token after Bitcoin to receive a spot ETF in the U.S. This speculation has also been supported by the higher premiums for Ethereum ecosystem tokens on Coinbase, suggesting that the recent demand is coming from U.S. investors (CryptoQuant).
Article edited by Parikshit Mishra.
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In recent times, meme coins like PEPE, SHIB, and DOGE have witnessed a significant surge of up to 26% in value within a span of just 24 hours. This sudden increase is being attributed to the “spillover effect” of the growth of major cryptocurrencies like Bitcoin and Ethereum.
Notably, since late February, traders have been utilizing meme coins as a means to make a bet on the growth of Ethereum. This demand for ETH has been escalating ever since mid-January, with investors eagerly awaiting the approval of a spot ETF in the United States.
As Ethereum inches towards the $4,000 mark, meme coins have outperformed it in terms of growth. Leading the pack is PEPE, whose value shot up by 26%. DOGE and SHIB also experienced a rise of 10% each, recovering from their losses on Thursday. According to CoinGecko, the meme coin category saw an average growth of 8.6%, while the broader-based index of tokens, CoinDesk 20, witnessed a rise of 2.53%.
Many traders have been using meme coins as a proxy bet on the growth of Ethereum, which has led to their surge in value. Slater Heil, co-founder and COO of DeFi platform Blueberry Protocol, believes that as a result of the bullish market conditions, investors are taking advantage of meme coins. However, he warns that in the short to medium term, there could be a shift back to “fundamentally driven” altcoins.
The speculation of a potential spot ETF approval for Ethereum in the U.S. has also contributed to the increasing demand for the cryptocurrency. This speculation is further supported by the higher premiums for Ethereum ecosystem tokens on Coinbase, indicating that the demand is mainly coming from U.S. investors (CryptoQuant).
In conclusion, the rise of meme coins can be attributed to the growth of Bitcoin and Ethereum, as well as speculation surrounding the approval of a spot ETF for the latter. However, traders should be cautious of potential fluctuations and focus on fundamentally driven altcoins in the long run.
