The recent surge in meme coins, such as Pepecoin (PEPE), Shiba Inu (SHIB), and Dogecoin (DOGE), has garnered attention due to their remarkable gains of up to 26% within the last 24 hours. Mark Travers, reporting on March 9, 2024, attributes this surge 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.
This surge is not isolated but part of a broader trend where traders view meme coins as a speculative bet on the expansion of Ethereum. The bullish momentum for ETH has been steadily building since mid-January, fueled by anticipation of a spot Exchange-Traded Fund (ETF) approval in the United States.
Leading the charge, PEPE saw a significant 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, monitored on CoinGecko, reported an average growth of 8.6%, outpacing the CoinDesk 20’s rise of 2.53%. This index encompasses a diverse array of tokens, highlighting broad-based interest in digital currencies beyond traditional heavyweights.
Slater Heil, co-founder and COO of DeFi platform Blueberry Protocol, emphasized the profound impact of Ethereum and Bitcoin’s success on the wider cryptocurrency ecosystem, including meme coins. He noted, “As bitcoin and ether rise, a spillover effect is caused where coins deployed on ethereum and solana also surge – including meme coins.”
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, according to data from CryptoQuant.
This surge reflects a growing interest and optimism in the cryptocurrency market, driven by speculation, investor sentiment, and anticipation of regulatory developments. It underscores investors’ eagerness to capitalize on favorable market conditions, with meme coins serving as one avenue for such investment.
