Its “meme” rally in the cryptocurrency space as investors seem to be hungry to take on more risk given the rally seen in smart contract leader, Ethereum. Dogecoin, the memecoin leader, is up more than 10% on Tuesday, while the broader crypto market shows signs of slowing down after a rally last week.
Dogecoin was trading at $0.085, up more than 23% over the past seven days, according to data from CoinMarketCap. Tuesday’s price move comes as dog-themed memecoins have rallied over the past week, with some jumping more than 28%.
Shiba Inu, who occupies second place on the memecoin chart, with a market capitalization of $8.65 billion is up over 30% over the past week, trading hands for $0.0000158 on Tuesday. Others such as baby dogecoin is up 19.1% and dogelon mars rose a modest 7.9%.
Memecoins Rally As Crypto Market Cools Off
This rally comes as the U.S. CPI date, a keep measure for inflation dropped to 8.5% from 9.1% and also below expectations of 8.7%, as oil and energy prices are taking a back seat, with oil prices especially, falling below $100.
The fall in CPI indicates that investors are increasing their risk appetite as the data indicates that the U.S. Fed may also take a back seat on increasing interest rate as it has done for over three months.
Conversely, the leading cryptocurrencies by market cap, bitcoin and ether, are both down over the past day, -1.1% and –1.7% respectively. Ether had been leading the charge in crypto markets over the past few weeks, gaining over 15% between August 7 and August 14, as traders bided on the upcoming merge. But that rally appears to have cooled off for now.
With memecoins rallying, investors are advised to be careful as they are token burn of a trend with most not having fundamental use cases of value asides from the ability to transfer assets.