Meme Coins On Solana Network Soared Due To A Decline In US Inflation

Market cap memecoin on the Solana network is soaring. (Photo; Doc. Thegamer)

JAKARTA - Memecoin, aka meme coins, which are often considered speculative assets, suddenly skyrocketed, noting a significant increase in line with the decline in inflation rates in the United States.

Recent data suggest that the US Consumer Price Index (CPI) fell to only 0.3%, an indication that core inflation is returning to its last seen level in 2021. Its immediate impact was felt on the stock market with the S&P 500 index and the NASDAQ Composite hitting a new record high, and unexpectedly, memecoin became one of the biggest beneficiaries of the situation.

Memecoin, which previously slumped sharply, is now showing a strong rebound. The market capitalization for memecoins rose by 8.8%, while the overall crypto market cap rose 6.2% in the same period. Memecoins on the Solana network recorded an increase of up to 11.8%, while dog-themed tokens such as Dogecoin (DOGE) and Shiba Inu (SHIB) also experienced a significant increase.

Dogecoin, trading at 0.1548 US dollars (approximately Rp2,200), saw an increase in trading volume of US$1.48 billion (approximately Rp21 trillion) with a market capitalization of 22.3 billion US dollars (approximately Rp317 trillion). Shiba Inu jumped 9.8% in the last 24 hours with trading volumes of more than 906 million US dollars (approximately Rp12.9 trillion), and market capitalization of SHIB rose to US$14.8 billion (approximately Rp210 trillion).

The spike in memecoin prices appears to be triggered by improving market sentiment thanks to a positive CPI report. The decline in inflation gives investors confidence to channel funds to risky assets that ultimately benefit cryptocurrencies.

Quoted from CoinGape, some analysts predict that a cut in interest rates by the Federal Reserve, which is expected to occur in September, as well as the closer the US Presidential election and crypto regulation, could be a factor that affects the continuation of this trend.