#pepe Meme coins such as PEPE, SHIB, and DOGE have experienced a notable surge, rising by as much as 26% within the past 24 hours.
This increase is attributed to a "spillover effect" from the growth observed in Bitcoin and Ethereum. Traders have been utilizing meme tokens as a means to indirectly bet on the expansion of Ethereum or other blockchain networks.
Notably, PEPE, shiba inu (SHIB), and dogecoin (DOGE) demonstrated substantial gains as the price of ether (ETH) approached the $4,000 mark, a level last witnessed in December 2021.
PEPE exhibited a remarkable 26% jump, while DOGE and SHIB rebounded from Thursday's losses, recording a 10% increase.
The meme coin category, tracked on CoinGecko, displayed an average sector growth of 8.6%, coinciding with a 2.53% rise in the CoinDesk 20, a comprehensive index covering various tokens.
Traders have increasingly turned to meme coins as a proxy for betting on the growth of Ethereum since late February.
The surge in bullish demand for ETH, starting in mid-January, has been fueled by expectations surrounding the potential approval of a spot exchange-traded fund (ETF) for Ethereum in the United States.
According to Slater Heil, co-founder and COO of DeFi platform Blueberry Protocol, the upward movement in meme coins is a spillover effect from the rising values of Bitcoin and Ethereum, given their shared ecosystems.
He noted that investors capitalize on favorable market conditions, with meme coins serving as one avenue for doing so.
However, Heil cautioned that a shift back to "fundamentally driven" altcoins could be anticipated in the short to mid-term.
In summary, the recent surge in meme coins like PEPE, SHIB, and DOGE is attributed to a spillover effect from the growth of Bitcoin and Ethereum, with traders using these tokens as a way to indirectly bet on the expansion of blockchain networks.
The bullish demand for Ethereum, fueled by expectations of a spot ETF approval in the U.S., has contributed to the overall positive momentum in the meme coin sector.
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