Memecoins Jump 8% as US Inflation Falls
Memecoins are surging with intra-day trading sparking a rally in several assets as the United States inflation falls. The Consumer Price Index data which saw monthly inflation figures drop to 0.3% has occasioned a boost in crypto prices.
This means that core inflation is down to 2021 levels signalling potential interest rate cuts. The stock market added to its recent upward moment with both the S&P 500 and NASDAQ’s Composite Index hitting all-time highs. Memecoins are big beneficiaries because of reduced rates mean increased sentiments as investors move funds to risky assets.
Memecoins Mark a Rebound
Memecoins faced a sharp correction alongside top crypto assets following negative macroeconomic factors. Some assets posted double-digit losses while new memecoins saw inflows. The memecoin market cap is up 8.8% today today while the wider crypto market cap is up 6.20% in the same period.
Solana memecoins have notched 11.8% gains as an asset class while dog-themed tokens have spurred 8.6%. Market leader Dogecoin (DOGE) is up 5.8% today extended weekly gains of over 8%. Dogecoin bulls have made projections on the asset price going on a run to $1 on the back of a wider crypto bull market.
The asset trades at $0.1548 and has seen improved trading volumes. Trading volumes for DOGE are at $1.48 billion while its market cap stands at $22.3 billion. Shiba Inu (SHIB) has soared 9.8% in the last 24 hours while weekly flows are at 11.7%. The asset has seen bullish upticks as on-chain factors rebound. With trading volumes over $906 million, the market cap ticked upwards to $14.8 billion.
Will It Last?
The surge recorded in memecoins follows improved market sentiments on the back of an improved CPI report. With inflation declining, investors have the confidence to pour funds into risky assets which will benefit cryptocurrencies.
Another factor that bulls tip for a sustained rally is interest rate cuts by the Federal Reserve. Most traditional institutions project rate cuts as early as September. The run-up to the US Presidential elections and crypto regulations for factors that may swing the asset.
Also Read: Here’s Why Ethereum Charts Might Turn Bullish Now: ETH Targets $4K?
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