Meme coins such as Pepecoin (PEPE), Shiba Inu (SHIB), and Dogecoin (DOGE) have experienced a remarkable surge of up to 26% within the last 24 hours.
This surge is attributed to the ripple effects of Bitcoin and Ethereum’s growth, particularly as Ethereum approaches the $4,000 mark, a pinnacle last reached in December 2021.
The increase in PEPE, DOGE, and SHIB’s value is seen as part of a broader trend where traders utilize meme coins as a speculative bet on the expansion of Ethereum, especially since the bullish momentum for ETH has been building since mid-January, fueled by the anticipation of a spot Exchange-Traded Fund (ETF) approval in the United States.
PEPE led the charge with a 26% increase, buoyed by renewed optimism.
Concurrently, DOGE and SHIB managed to recover from previous losses, each posting a 10% gain.
The overall meme coin sector, as monitored on CoinGecko, reported an average growth of 8.6%, outpacing the CoinDesk 20’s rise of 2.53%.
This index includes a diverse array of tokens, underscoring the broad-based interest in digital currencies beyond the traditional heavyweights.
Slater Heil, co-founder and COO of DeFi platform Blueberry Protocol, emphasized the impact of Ethereum and Bitcoin’s success on the wider cryptocurrency ecosystem, including meme coins.
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Heil noted, “As bitcoin and ether rise, a spillover effect is caused where coins deployed on ethereum and solana also surge – including meme coins.”
This trend reflects investors’ eagerness to capitalize on favorable market conditions, with meme coins serving as one of the avenues for such investment.
However, Heil also cautioned about a potential shift back to altcoins with more fundamental backing in the short to medium term.
The increase in demand for ether and Ethereum ecosystem tokens, particularly among U.S. investors, has been evidenced by higher-than-average Coinbase premiums over the past week, as indicated by data from CryptoQuant.
This surge underscores a growing interest and optimism in the cryptocurrency market, driven by speculation, investor sentiment, and the anticipation of regulatory developments.
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