Investing.com – It briefly climbed above the $69,000 mark before quickly retreating as investors looked elsewhere for higher returns on secondary tokens known as memecoins.
Two tokens in the ecosystem and MOG rose to record highs on Monday, continuing last week’s impressive gains. These increases also coincided with a nearly 5% raise in ether prices. The surge came after the U.S. approved key applications for listed funds on the ether exchange, prompting traders to consider meme tokens as beta bets.
This rally is part of a broader meme coin rally, with most meme-based cryptocurrencies trading in the green. The sector has seen a surge in interest over the past few weeks after legendary trader and investor Roaring Kitty returned to the trading world after a three-year absence.
Moreover, the number of addresses holding meme coins for less than thirty days reached an all-time high last month, indicating a massive influx of modern traders entering the market.
Traders are considering PEPE and MOG as leveraged ways to gain exposure to ether. The price raise for these tokens began when analysts increased the likelihood that ether ETFs would be admitted to trading in the US
Over the past 24 hours, frog-themed PEPE and cat-themed MOG have gained 11% and 45% respectively as the beta betting narrative gains traction. A beta bet allows investors to gain exposure to a core asset by investing in related networks or protocols. PEPE trading volume in the spot and futures markets reached more than $1.8 billion, well above the usual range of $400 million to $600 million.
Futures data has revealed a huge raise in open interest in PEPE and MOG trackers over the past 24 hours. PEPE’s open interest rose to $720 million from $550 million last week, and MOG’s open interest rose to $8.3 million from $5 million. An raise in open interest is typically seen as an indicator of modern capital entering the market, which can lead to greater price volatility.
Despite the bullish sentiment, PEPE’s long to tiny ratio is skewed toward the bearish side at 54%, indicating that investors are largely betting on further price increases.
PEPE even entered the top 20 largest tokens by market capitalization, exceeding $6 billion, and provided early investors with decent returns on initial investments starting at $460. Since 2023, meme tokens – typically seen as having no intrinsic value but enjoying a immense following – have gained prominence thanks to beta bets on their respective ecosystems.
