Pepe, a memecoin built on the Ethereum platform, has reached a record peak after a 27% surge in the last 24 hours. This surge is fueled by speculations surrounding the possible approval of Ethereum exchange-traded funds (ETFs) in the United States. Notably, crypto investor Matthew Hyland has pointed out the significance of PEPE in the Ethereum ETF landscape.

What's the Latest with PEPE?

Crypto analyst Kaleo has observed the unique movement of Ethereum and highlighted PEPE's emergence as a key trading pair. Ethereum itself experienced a notable 23.28% increase, reaching $3,785, driven by optimism regarding potential approval of Ethereum ETFs by the looming May 23 deadline. This unexpected turn of events has stirred excitement within the crypto community.

As per CoinMarketCap data, PEPE is currently trading at $0.00001387, marking a 23.48% surge in the past day. Analyst Plazma has expressed confidence in PEPE's upward trend, while also cautioning about short-term volatility. Plazma's recent statement on May 21 suggests that PEPE's price discovery will continue, with expected fluctuations, aiming for a 2x-3x increase in the coming weeks.

PEPE and the Memecoin Landscape

Data from CoinGlass indicates a significant 40% surge in PEPE's Open Interest (OI) to $172.96 million within the last 24 hours. This rise in OI typically signifies heightened investor confidence in future positions within the cryptocurrency realm, with a noticeable increase in long positions.

A 6% drop in PEPE's price could lead to liquidation of around $10 million in long positions. While PEPE led the recent surge among the top 10 memecoins by market cap, other memecoins like BONK, Floki, and Book of Memes (BOME) also experienced substantial gains in the past week.

Key Takeaways for Investors

PEPE's performance is closely linked to speculations surrounding Ethereum ETF approvals.

The rise in Open Interest indicates growing investor confidence in PEPE.

Market fluctuations may offer opportunities for short-term traders.

Investing in memecoins such as PEPE requires a thorough understanding of potential risks and rewards.

In summary, the surge in PEPE's value highlights the significant impact of market speculation and investor sentiment on cryptocurrency valuations. While the anticipation of Ethereum ETF approvals drives current optimism, investors are advised to remain mindful of the inherent volatility in the market.