Memecoins
Memecoins rise 8% as US inflation collapses
Memecoins are surging, with intraday trades triggering a rally in several assets as US inflation declines. Consumer price index data, which saw monthly inflation figures drop to 0.3%, caused cryptocurrency prices to rise.
This means core inflation has fallen to 2021 levels, signaling potential interest rate cuts. The stock market built on its recent bullish momentum, with the S&P 500 and the NASDAQ composite index hitting all-time highs. Memecoins are big beneficiaries because reduced rates mean increased sentiment as investors shift funds into risky assets.
Memecoins mark a recovery
Memecoins faced a sharp correction alongside major crypto assets following negative macroeconomic factors. Some assets saw double-digit losses, while new memecoins saw inflows. Today the memecoin market capitalization increased by 8.8%, while the broader cryptocurrency market capitalization increased by 6.20% over the same period.
Solana memecoins posted gains of 11.8% as an asset class, while dog-themed tokens saw an increase of 8.6%. Market leader Dogecoin (DOGE) is up 5.8% today and extended weekly gains by more than 8%. Dogecoin bulls have been making projections that the asset price could reach $1 on the back of a broader cryptocurrency bull market.
The asset is trading at $0.1548 and has seen an improvement in trading volumes. Trading volumes for DOGE amount to $1.48 billion, while its market capitalization stands at $22.3 billion. Shiba Inu (SHIB) grew by 9.8% in the last 24 hours while weekly flows are at 11.7%. The asset recorded bullish gains as on-chain factors rebounded. With trading volume exceeding $906 million, the market capitalization rose to $14.8 billion.
Will last?
The recorded surge in memecoins follows improving market sentiment on the back of an improvement IPC Report. With inflation falling, investors have the confidence to invest funds in risky assets that will benefit cryptocurrencies.
Another factor that bulls suggest for a sustained rally is interest rate cuts by the Federal Reserve. Most traditional institutions expect rate cuts as early as September. The run-up to the US presidential election and crypto regulations are factors that could swing the asset.
Read also: Here’s Why Ethereum Charts Could Turn Bullish Now: ETH Heads for $4,000?
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David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in learning about emerging technologies and has an eye for the latest news. Staying up to date on trends, David has reported in several niches including regulation, partnerships, cryptocurrencies, stocks, NFTs, etc. Away from the financial markets, David cycles and rides horses.
The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for personal financial loss.