The memecoin market has soared, reaching a market cap of $58 billion and is up 10% in the last 24 hours, outpacing the broader cryptocurrency market, which is up 5.5% over the same period.
The top five memecoins, which account for approximately 77% of the total market capitalization, showed significant gains. In particular, Shiba Inu recorded a rise of more than 7% in the last 24 hours, and a rise of more than 12% last week. Other major memecoins such as dogecoin, pepe, and floki have also experienced notable increases.
Wintermute analysts attribute the surge to “fast funding” focused on memecoins such as $PEPE, $BONK, $FLOKI and others. However, celebrity trader DonAlt warned of potential losses from memecoins, warning against excessive investments in dog or cat themed coins.
While debate continues over the future of memecoins, the broader cryptocurrency market has rebounded after inflation eased. Bitcoin price rose about 2.5% after April CPI data came in lower than expected. Investors see this as an optimistic sign of a possible regime change after the U.S. Federal Reserve (Fed) announced its intention to reduce quantitative tightening.
Despite the positive sentiment, analysts highlight that inflation remains above 3% and recent Producer Price Index data shows it has risen for three consecutive months. Markets await further guidance on the Federal Reserve’s response to inflation data.
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