Memecoin’s intraday trading volume surged as inflation in the U.S. fell, triggering gains in multiple assets. Cryptocurrency prices rose after consumer price index data showed monthly inflation figures fell to 0.3%.

This means that core inflation has fallen to 2021 levels, signaling that rate cuts are likely. The stock market has continued its recent rally as both the S&P 500 and Nasdaq Composite hit all-time highs. Memecoin is the biggest beneficiary as lower interest rates mean increased sentiment as investors move money into riskier assets.

Memecoin rebounds

Memecoin, along with top crypto assets, is facing a sharp correction due to negative macroeconomic factors. Some assets are seeing double-digit losses while new memecoins are seeing inflows. Today, memecoin market cap is up 8.8%, while the broader cryptocurrency market cap is up 6.20% over the same period.

The Solana memecoin as an asset class is up 11.8%, while dog-themed tokens are up 8.6%. Market leader Dogecoin (DOGE) is up 5.8% today and over 8% for the week. Dogecoin bulls predict the asset will rise to $1 on the back of a broader crypto bull run.

The asset is trading at $0.1548 with increased trading volumes. DOGE’s trading volume is $1.48 billion, while its market cap is $22.3 billion. Shiba Inu ( SHIB ) surged 9.8% in the past 24 hours, while the weekly flow is 11.7%. The asset saw a bullish rise as on-chain factors rebounded. The trading volume exceeded $906 million, and the market cap rose to $14.8 billion.

Will it last?

Memecoins surged as market sentiment improved following an improving Consumer Price Index report. As inflation falls, investors feel confident to put money into risky assets, which will benefit cryptocurrencies.

Another factor bulls see as a continued rally in the stock market is the Federal Reserve’s rate cuts. Most traditional institutions expect a rate cut as early as September. The run-up to the U.S. presidential election and cryptocurrency regulations that could affect the asset.