In summary
As Ethereum's rise boosts investor sentiment, PEPE coin has also surged, with its strong correlation and growing holder base indicating potential breakthroughs.
The success of the Ethereum ETF has sparked demand from institutional investors, driving up PEPE. Technical patterns suggest that PEPE's price is set to rise.
Despite the price pullback, PEPE shows resilience, with an increasing number of wallet addresses and strong retail interest, though risks from large holders still exist.
PEPE is one of the largest meme coins by market cap and is showing signs of renewed investor interest.
This is a broader surge in Ethereum (ETH) driven by institutional capital inflows and corporate adoption.
How Ethereum's Surge Will Drive Up PEPE's Price
PEPE is the best-performing large meme coin today and this week, showing resilience despite a turbulent market environment.
In the past 24 hours, PEPE's price has surged nearly 10%, effectively outperforming peers like Dogecoin (DOGE), Shiba Inu (SHIB), and Bonk Inu (BONK).
The frog-themed meme coin has sparked positive sentiment in the Ethereum market, with the highest market cap altcoin currently soaring to new highs.
As an Ethereum-based meme coin, capital is flowing from the ETH market into low market cap tokens on its blockchain, with PEPE receiving the most attention.
Analysts say that after the ETH ETF (exchange-traded fund) hit a historic high, PEPE was boosted by Ethereum's strength. On August 11, net inflows into Ethereum ETFs surpassed $1 billion, with BlackRock's ETHA leading the charge.
This milestone reflects a significant shift in traditional finance (TradFi) perspective on Ethereum as an asset, playing an increasingly important role in decentralized finance (DeFi), Web3 infrastructure, and smart contracts.
The surge in institutional demand has triggered what analysts call an ETH accumulation wave, a trend that may bring significant benefits to meme coins like PEPE based on Ethereum.
According to year-to-date (YTD) data, PEPE maintains a strong price correlation of 0.76 with Ethereum. This suggests that any significant rise in ETH could provide momentum for a PEPE breakout.
Despite the price pullback, the holder community continues to expand.
Interestingly, even though PEPE's price has halved since January, its fundamentals have strengthened in 2024. PEPE's wallet addresses have grown by 25% this year, indicating sustained retail investor interest even during economic downturns.
The technicals also favor PEPE bulls. Since the beginning of this year, PEPE has formed a symmetrical triangle pattern, a technical formation that typically signals upcoming price expansion.
Meanwhile, despite improving market sentiment, risks still exist. On-chain data shows that the top 10 PEPE wallets control over 37% of the PEPE token supply. This raises concerns about potential price manipulation or sudden sell-offs.
Holders are highly concentrated, with 94% of TRUMP and MELANIA tokens held by just 40 wallets, a recurring challenge in the meme coin ecosystem. This is because if a few large holders decide to exit, liquidity can quickly vanish.
With the rise of the Ethereum ETF market and increased institutional demand, PEPE may be poised to ride the wave.
If ETH continues to rise and technical patterns play out, PEPE could experience significant increases in the coming weeks.
However, investors must do their own research, including monitoring whale wallet activity, recognizing that sentiment can reverse as quickly as the meme coin market surges.
