Ether outperformed Bitcoin over the weekend due to renewed optimism for the second-largest cryptocurrency.

Two Ethereum-based tokens, PEPE and MOG, reached new highs following the approval of U.S. ether ETF filings, with traders viewing them as speculative bets. Open interest in futures for these tokens increased, indicating new money entering the market, although the long-to-short ratio for PEPE suggests traders are betting against further price increases.

On Monday, PEPE and MOG surged to record highs, driven by the previous week's approval of key ether ETF filings in the U.S., leading traders to consider meme tokens as speculative bets. PEPE, themed around frogs, and MOG, themed around cats, jumped 11% and 45%, respectively, in the past 24 hours, as the speculative bet narrative remained strong. Trading volumes for PEPE reached over $1.8 billion, compared to the usual range of $400 million to $600 million.

The gains came as ether rose nearly 5%, leading major tokens while Bitcoin fell 1%. The broad-based CoinDesk 20 index, excluding stablecoins, lost 0.3%.

Futures data shows a spike in open interest for PEPE and MOG instruments over the past 24 hours. PEPE’s open interest rose to $720 million from $550 million last week, while MOG’s increased to $8.3 million from $5 million. Rising open interest indicates new money entering the market, potentially signaling further price volatility. However, Coinalyze data shows a long-to-short ratio for PEPE skewed 54% in favor of bears, indicating traders are betting against further price rises.

As reported by CoinDesk last week, traders have considered PEPE and MOG as leveraged ways to gain exposure to ether. The rally in these tokens began when analysts increased the odds of ether ETFs being approved for trading in the U.S. PEPE even entered the 20 largest tokens by market capitalization, reaching over $6 billion, making some early investors millions from an initial investment of just $460.

Since 2023, meme tokens, typically seen as having no intrinsic value but enjoying strong followings, have gained prominence as speculative bets on their respective ecosystems. Several Solana-based meme tokens surged from December to March as the network’s SOL tokens rose, contributing to ecosystem growth and attracting attention. In December, the Avalanche Foundation announced investments in meme tokens built on the Avalanche network, recognizing the cultural and memetic value these tokens can drive among investors.