Many altcoins within the Ethereum (ETH) ecosystem experienced notable price increases after Bloomberg analysts raised the probability of spot Ethereum exchange-traded funds (ETFs) being approved, from 20% to 75%. This shift in sentiment triggered a market-wide rally, lifting ETH by over 17% in one day and pushing Bitcoin past $71,000 for the first time since early April.
How Did Mog and Pepe Perform?
The heightened chances of spot Ethereum ETF approval greatly impacted various Ethereum-based altcoins, especially memecoins. The cat-inspired Mog (MOG) token, which gained popularity on TikTok, saw a nearly 50% surge, while the frog-themed Pepe (PEPE) climbed more than 20%.
Since their launch in 2023 on Ethereum, MOG and PEPE have become notable players in the memecoin market, joining the ranks of Dogecoin (DOGE) and Shiba Inu (SHIB). The burgeoning interest in these tokens underscores the broader influence of potential ETF approval on the Ethereum ecosystem.
Beyond memecoins, utility altcoins within the Ethereum network also posted significant gains. Lido’s token (LDO) rose by 15%, and Arbitrum’s token (ARB) increased by 18%. DOGE and SHIB experienced modest gains of approximately 6%, reflecting the widespread impact of the anticipated ETF approval.
Why Are Memecoins Thriving?
Memecoins often serve as leveraged bets on their underlying blockchains’ growth, reacting strongly to news related to the ecosystem. Viro, a core team member of MOG, commented that well-established memes like MOG are considered high-beta assets for Ethereum, attracting investors with substantial price appreciation potential. He indicated that MOG’s strong performance relative to PEPE suggests more growth potential, making it an appealing investment in the memecoin market.
Actionable Insights for Investors
– Consider high-beta assets like MOG for potentially higher returns.
– Monitor the approval process of Ethereum ETFs for market trends.
– Diversify investments within the Ethereum ecosystem to mitigate risk.
– Pay attention to memecoin market movements for short-term gains.
The memecoin phenomenon is not confined to Ethereum. Solana-based memecoins also recorded significant gains from December to March, mirroring SOL’s rise and fueling interest in the Solana network. Likewise, the Avalanche Foundation announced plans to invest in memecoins, boosting both prices and the emergence of new tokens.