Memecoins are making a strong comeback, rising 8.8% alongside other cryptocurrencies, thanks to better Consumer Price Index (CPI) data in the US. This surge in memecoins is fueling a rally across different assets, coinciding with a drop in US inflation to 0.3% per month, bringing it back to 2021 levels.
This decline suggests potential interest rate cuts. The stock market is also on the rise, hitting record highs for both the S&P 500 and NASDAQ’s Composite Index. Memecoins are benefiting especially from this situation, as lower rates typically boost investor confidence in riskier assets, leading to a shift of funds into memecoins.
Memecoins Experience Volatility Amidst Macro Factors
Memecoins recently underwent a significant correction alongside leading cryptocurrencies due to negative macroeconomic influences. While some assets suffered double-digit losses, there was an influx of investment into new memecoins. Despite this turbulence, the memecoin market cap surged by 8.8% today, outpacing the wider crypto market’s 6.20% increase in the same period.
Solana memecoins recorded impressive gains of 11.8%, while dog-themed tokens also saw a surge, with an 8.6% increase. Dogecoin (DOGE), the market leader, experienced a 5.8% rise today, extending its weekly gains to over 8%. Bullish projections for DOGE suggest a potential run to $1 amid a broader crypto bull market. Currently trading at $0.1548, DOGE has witnessed heightened trading volumes, reaching $1.48 billion, with a market cap of $22.3 billion.
Shiba Inu (SHIB) surged by 9.8% in the last 24 hours, with weekly flows at 11.7%. The asset’s bullish momentum is driven by rebounding on-chain factors. With trading volumes surpassing $906 million, SHIB’s market cap also saw an uptick to $14.8 billion.
Memecoin Surge Fueled by Positive Sentiments
The recent surge in memecoins can be attributed to improved market sentiments, spurred by a favorable Consumer Price Index (CPI) report. With inflation on the decline, investors are feeling more confident in allocating funds to riskier assets, a trend that bodes well for cryptocurrencies.
Bulls are optimistic about a sustained rally in memecoins, citing potential interest rate cuts by the Federal Reserve as a driving factor. Many traditional institutions are projecting rate cuts as early as September, which could further bolster the crypto market. Additionally, the run-up to the US Presidential elections and forthcoming crypto regulations are seen as variables that could impact the trajectory of these assets.
Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.
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