Memecoins
Meme Coins Hit Records as Bitcoin Starts Week in Red From Investing.com
Investing.com – briefly rose above the $69,000 mark before retreating quickly as traders began looking elsewhere for higher returns in fringe tokens known as memecoins.
Two tokens within the ecosystem, and MOG, rose to record highs on Monday, continuing impressive rallies from last week. These gains also coincided with a nearly 5% rise in ether. The surge followed US approval of filings on major Ether exchange-traded funds, prompting traders to view meme tokens as beta bets.
The increase is part of a broader rally in meme coins, with most meme-based cryptocurrencies trading in the green. The sector has seen a surge of interest in recent weeks after legendary trader and investor Roaring Kitty returned to the world of trading after a three-year absence.
Furthermore, the number of addresses holding meme coins for less than thirty days reached a record high last month, indicating a massive influx of new traders entering the market.
Traders have viewed PEPE and MOG as leveraged ways to gain exposure to ether. The rally in these tokens began as analysts raised the likelihood of ether ETFs being approved for trading in the US
Over the past 24 hours, frog-themed PEPE and cat-themed MOG have gained 11% and 45% respectively, while the beta betting narrative has gained ground. A beta bet allows investors to gain exposure to a major asset by investing in related networks or protocols. Trading volumes for PEPE on 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 massive increase in open interest for instruments tracking PEPE and MOG over the past 24 hours. PEPE’s open interest rose to $720 million from $550 million last week, and MOG’s opened interest rose to $8.3 million from $5 million. An increase in open interest is generally seen as an indicator of new capital entering the market, potentially leading to greater price volatility.
Despite the bullish sentiment, the long/short ratio for PEPE is tilted bearish at 54%, indicating that traders are largely betting against further price increases.
PEPE even entered the top 20 largest tokens by market capitalization, exceeding $6 billion, and provided early investors with decent returns from initial investments as low as $460. Since 2023, meme tokens, generally perceived as having no intrinsic value but with a sizable following, have risen to prominence as beta bets on their respective ecosystems.