Memecoin Mania: Cat-Themed Memecoins Surge After Fed’s 50 Basis Point Rate Cut
The resurgence of cat-themed memecoins is a sign that the wider crypto market is beginning to become more risk-tolerant. The majority of the gains in tokens like Cat in a Dog’s World (MEW), Solana-based POPCAT, Ethereum-based MOG, and BNB Chain-based Simon’s Cat (CAT) have occurred since Wednesday, when the U.S. Federal Reserve reduced rates by 50 basis points for the first time in four years, which fueled the prices of risk assets, including Bitcoin. These tokens have increased by 40% in just one week.
Cat-Themed Tokens Skyrocket 14%, Outpacing Dog Memes in Bullish Market
Meta tokens, often known as beta bets by cryptocurrency traders, have gained popularity since early 2023 as a leveraged method of wagering on the expansion of the underlying blockchains. With dog-themed Dogecoin and Shiba Inu among the top gainers in the 2020–2021 bull run, cat-themed tokens have emerged as a new cohort.
Compared to its dog-themed rivals, cat memes are more popular due to their comparatively lower total market capitalization. In contrast to the 14% increase in cat tokens over the last 24 hours, the dog-themed meme coin sector, as monitored by CoinGecko, has seen an average gain of 4%. Memecoins and other alternative tokens are expected to continue rising in value in the upcoming months, according to some analysts.
Memecoins are experiencing a surge largely due to the anticipation of increased liquidity following the Federal Reserve’s recent 0.5% interest rate cut. Market expectations for lower rates have converged, and with the prospect of more liquidity entering the financial system, investors are adopting a bullish sentiment. We anticipate that the memecoin market could grow significantly over the next two months. The increased liquidity and a heightened appetite for risk may drive investors toward these high-risk, high-reward assets, potentially leading to a boom similar to previous cycles,
Alex Andryunin, founder of Gotbit Hedge Fund
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