Memecoins
Memecoins jump 8% as US inflation falls
Memecoins are rising with intraday trading, sparking a rally in several assets as U.S. inflation declines. Consumer Price Index data, which saw monthly inflation figures fall to 0.3%, led to a rise in crypto prices.
This means that core inflation has returned to 2021 levels, pointing to a potential decline in interest rates. The stock market added to its recent move higher, with the S&P 500 and NASDAQ Composite Index hitting all-time highs. Memecoins are big beneficiaries as falling rates mean increased sentiment as investors shift their funds into risky assets.
Memecoins mark a rebound
Memecoins have faced a sharp correction alongside major crypto assets following negative macroeconomic factors. Some assets saw double-digit losses while new memecoins saw inflows. The memecoin market cap is up 8.8% today, while the broader crypto market cap is up 6.20% over the same period.
Solana memecoins saw gains of 11.8% as an asset class, while dog-themed tokens returned 8.6%. Market leader Dogecoin (DOGE) is up 5.8% today, extending its weekly gains of over 8%. Dogecoin bulls have made asset price projections of up to $1 thanks to a broader crypto bull market.
The asset is trading at $0.1548 and has seen improvement in trading volumes. Trading volumes for DOGE stand at $1.48 billion while its market capitalization stands at $22.3 billion. Shiba InuSHIB) has soared by 9.8% in the last 24 hours while weekly flows stand at 11.7%. The asset has seen a bullish rally as on-chain factors rebound. With trading volumes exceeding $906 million, the market capitalization increased to $14.8 billion.
Will it last?
The rise recorded in memecoins follows improved market sentiment due to the improving situation. CPI report. With inflation falling, investors have the confidence to invest funds in risky assets, which will benefit cryptocurrencies.
Another factor that suggests a lasting rally is the reduction in interest rates by the Federal Reserve. Most traditional institutions are planning rate cuts as early as September. The run-up to the US presidential elections and crypto regulations are factors that could tip the asset.
Read also: Here’s why Ethereum charts could turn bullish now: ETH targeting $4,000?
David is a financial news contributor with 4 years of experience in Blockchain technology and cryptocurrencies. He is interested in emerging technologies and has an eye for the latest news. Staying on top of trends, David has worked across several niches including regulation, partnerships, crypto assets, stocks, NFTs, and more. Far from the financial markets, David goes cycling and horse riding.