Ethereum ETF Speculation Sparks Meme Coin Frenzy

In a dramatic twist to the crypto narrative, last week’s GameStop-induced meme stock hype has morphed into Ethereum ETF excitement, fueling a significant market rally—especially for meme coins.

The spotlight shifted late Monday when Ethereum (ETH) surged by an astonishing 23% within hours, following renewed rumors about the potential approval of spot Ethereum ETFs. This surge has seemingly provided a gravitational pull for various meme coins, with some riding the wave of ETH’s monumental gains.

Pepecoin (PEPE), a prominent meme coin on the Ethereum network, has notably capitalized on this momentum, skyrocketing 32% in the last 24 hours. This rally propelled PEPE to a new all-time high of $0.0000128 and pushed its market capitalization beyond the $5 billion mark for the first time.

The surge in ETH, sparked by circulating rumors that Wall Street might soon green-light applications for trading spot ETH ETFs, has not shown signs of slowing down. ETH broke past the $3,800 mark multiple times on Tuesday morning, with Pepecoin’s price hike mirroring ETH’s ascent almost to the minute.

While the direct connection between PEPE and the ETH ETF developments remains unclear, the general volatility and social media-driven sentiment surrounding meme coins likely played a role in PEPE’s recent gains.

Other meme coins experienced more modest increases. Dogecoin, which operates on its own blockchain, rose by 10% in the last 24 hours. Shiba Inu, the largest Ethereum-based meme coin, saw a near 6% increase.

Curiously, the Ethereum frenzy also impacted the Solana ecosystem. BONK, one of Solana’s top meme tokens, experienced a significant boost, surging 33% before stabilizing at a 19% increase, priced at $0.00003127 at the time of writing.

BONK’s rise occurred approximately two hours after ETH and PEPE began their ascents, maintaining pace with their substantial gains throughout the day. Some attribute BONK’s spike to the conclusion of a weekly token distribution as part of a grants program, though further distributions are expected over the next two years.

Meanwhile, Solana (SOL) itself saw a slight dip of 2% in the past day but is up nearly 24% over the week, highlighting the broader impact of Ethereum’s ETF speculation across various blockchain ecosystems.

This dynamic interplay between Ethereum’s potential ETF approval and the broader meme coin market illustrates the intricate and often unpredictable nature of cryptocurrency markets, where sentiment and speculation can drive significant price movements.