2 memecoins stand out in the weekly cryptocurrency race
Bitcoin (BTC), although it had a bullish week, continues to sideways below its all-time high. The main digital asset has still not managed to exceed $74,000, which would lead it to set new records.
In this context, many investors “bored” with the low volatility of BTC go out to explore the cryptocurrency marketwhich is why many altcoins shoot up.
Over the last 7 days, 2 memecoins (cryptocurrencies or rather tokens, based on memes) led the rise. This, taking into account only the 100 crypto assets with the highest market capitalization.
The tokens leading the race are FLOKI (inspired by a puppy with a Viking helmet) and PEPE (whose logo and name are based on the popular frog of the same name). Chainlink (LINK) also stands out, which is not a memecoin but is the native cryptocurrency of a decentralized oracle network. At times, LINK also gets into the top 2 positions in the ranking.
In the following image, which is a screenshot of the CoinMarketCap portal, you can see the movement in the price of FLOKI and PEPE during the last 7 days:
In the case of FLOKI, the price increase can be explained, in part, by an approaching token burn (on a date not yet confirmed). This burning of 15 billion tokens (equivalent to just over $3 million) increases the scarcity of this currency. It is worth mentioning that it is a relatively minor reduction in currency, if one takes into account that the total market capitalization of FLOKI is almost 2,000 million (or 2 billionsin English) of dollars.
The rise of FLOKI and PEPE can also be explained by the resurgence of the “GameStop narrative”, a company whose stock has been considered by many to be a “meme stock.” In recent days this stock market action shot up and caused some memecoins to also have bullish behavior. PEPE, in the last week set a new historical high.
Bullish winds are perceived for bitcoin and cryptocurrencies
Memecoins have been a constant trend so far in 2024. This type of asset, without much technological foundation or great contribution to humanity, led the weekly increases on several occasions.
This is why, in the face of any “bullish wind” for the market, they tend to be the cryptocurrencies that rise the most. Investors go to the safer trend, statistically speaking. If they know that something has given good returns recently, they usually put their money there following the saying “you don’t change a winning team.”
And, certainly, there are bullish winds that are beginning to be felt. These mainly impact bitcoin, but, as a collateral effect, they also reach altcoins.
Among them we can mention a recent announcement about inflation in the United States, the main world economic power. He Core consumer price index (CPI) had a month-on-month increase of 0.3% and a year-on-year increase of 3.6%. This is how this information portal announced it yesterday through its X network account (previously called Twitter):
When inflation is lower than expected, the Federal Reserve (Fed) may be less likely to raise interest rates. Lower interest rates reduce the cost of borrowing and increase liquidity in the market, which encourages investment in higher risk assets, such as cryptocurrencies.
Furthermore, as CriptoNoticias has reported repeatedly in recent days, a wave of banking investment in bitcoin is being seen. This investment is mainly done indirectly, through spot ETFs that were approved in the United States.
If this trend of corporate investment continues to escalate, it could take bitcoin to new all-time highs, which due to a “carry-over effect” would also benefit altcoins.
