Pepe, an Ethereum-based memecoin, has surged to an all-time high following a 27% increase over the past 24 hours, fueled by speculations of the potential approval of spot Ethereum exchange-traded funds (ETFs) in the United States. Crypto investor Matthew Hyland highlighted in a May 21 post that PEPE stands out as a significant player in the Ethereum ETF scenario.
What’s Happening with PEPE?
Crypto investor and analyst Kaleo remarked on the peculiar movement of Ethereum and noted that PEPE has emerged as a prominent trading pair in hindsight. Ethereum saw a 23.28% rise to $3,785 recently due to renewed optimism that the Securities and Exchange Commission might approve Ethereum ETFs by the upcoming May 23 deadline. This unexpected development has stirred the crypto community.
According to CoinMarketCap, PEPE is currently trading at $0.00001387, reflecting a 23.48% increase in the last 24 hours. Crypto analyst Plazma expressed confidence that PEPE’s upward trajectory would persist, though he warned of potential short-term volatility. On May 21, Plazma shared, “PEPE price discovery will continue over the next few weeks, with normal breaks and usual pullbacks. We will reach 2x-3x in just a few weeks.”
PEPE and Memecoin Projects
CoinGlass data reveals that PEPE’s Open Interest (OI)—the total value of all outstanding PEPE futures contracts on crypto exchanges—jumped by 40% to $172.96 million in the past 24 hours. An OI surge usually indicates increased investor confidence in future positions in the cryptocurrency sector, with a notable number of long positions observed.
If PEPE’s price were to drop by 6%, approximately $10 million in long positions would face liquidation. Among the top 10 memecoins by market cap, PEPE led the recent price surge, but other memecoins also saw significant gains last week—BONK soared by 40.80%, Floki by 21.94%, and Book of Memes (BOME) by 25.04%.
Key Inferences for Investors
- PEPE’s performance is closely tied to Ethereum ETF approval speculations.
- An increase in Open Interest suggests growing investor confidence in PEPE.
- Market volatility may present opportunities for short-term traders.
- Investment in memecoins like PEPE should be approached with an understanding of potential risks and rewards.
In conclusion, the surge in PEPE’s value underscores the influential role of market speculation and investor sentiment in cryptocurrency valuations. While the potential approval of Ethereum ETFs drives current enthusiasm, investors should remain cautious of inherent market volatility.