The Ethereum-based memecoin, PEPE, has achieved a remarkable 27% increase, reaching a new all-time high in the last 24 hours. This surge is largely attributed to the speculative anticipation surrounding the potential approval of spot Ether exchange-traded funds (ETFs) in the United States. As the deadline approaches, the crypto community is abuzz with discussions and predictions about the impact of such regulatory advancements.
Crypto trader Matthew Hyland voiced his perspective via a May 21 X post, stating, “PEPE is probably the best memecoin play for the ETH ETF,” highlighting the correlation seen by traders between PEPE’s rise and the anticipated ETF approval. Similarly, the pseudonymous trader known as “Kaleo” remarked on the synchronicity of Ether’s price movements and PEPE’s performance, labeling it as one of the “most obvious hindsight trades out there.”
Ethereum’s Performance Amid ETF Speculation
Ether itself has seen a significant uptick, rising 23.28% over the past two days to a current price of $3,785. This increase comes amid renewed optimism that the U.S. Securities and Exchange Commission (SEC) may approve spot Ether ETFs by the May 23 deadline, an event that has surprised analysts and energized the crypto industry.
As of now, Pepe (PEPE) is trading at $0.00001387, marking a 23.48% increase over the last 24 hours, according to data from CoinMarketCap. This price movement positions PEPE as a standout performer in the memecoin category.
Predictions and Future Market Movements
The pseudonymous trader “Plazma” shared insights into the potential future of PEPE’s market performance, suggesting that the “PEPE price discovery should continue for the next few weeks with some normal breaks for a few days and the usual pullbacks,” anticipating a potential 2x-3x increase in the coming weeks.
The open interest (OI) for PEPE, which measures the total value of all outstanding PEPE futures contracts across crypto exchanges, rose by 40% to $172.96 million over the past 24 hours, as reported by CoinGlass. This significant increase in OI typically indicates a growing confidence among traders about their future positions on the cryptocurrency.
Implications of a Price Drop in PEPE:
- A 6% drop in PEPE’s price could result in the liquidation of $10 million in long positions, highlighting the volatile nature of the cryptocurrency market.
PEPE led the price growth among the top 10 memecoins by market capitalization over the past 24 hours. Other notable memecoins also experienced significant gains:
| Memecoin | Percentage Increase |
|---|---|
| Bonk (BONK) | 40.80% |
| Floki (FLOKI) | 21.94% |
| Book of Memes (BOME) | 25.04% |
The remarkable performance of PEPE amidst speculation around Ether ETF approvals reflects broader market dynamics where regulatory developments can significantly impact cryptocurrency valuations. As the deadline for the SEC’s decision draws near, both investors and traders remain keenly focused on how these developments will shape the market landscape.
The interconnectedness of ETF approvals, Ethereum’s valuation, and memecoin performance such as PEPE showcases the complex and often reactive nature of the cryptocurrency markets.
Featured image credit: Morrowind via Shutterstock