Solana meme coins are experiencing a resurgence as some of the most prominent ones rebound. This surge has increased their total market cap by over 20% to $7.43 billion.
Fartcoin, a popular AI-focused meme coin on Solana, is the best-performing major cryptocurrency this month, as its price has more than doubled. It has surged by over 300% from its lowest level this year, with its market cap nearing $1 billion.
The price of the Dogwifhat (WIF) token soared by over 16% in the last 24 hours and 23% over the past seven days.
Popcat’s price jumped by over 23% in the last 24 hours and 77% over the last seven days, while Goatseus Maximus (GOAT) increased by 35% in the past week. Other top-performing Solana meme coins included Pudgy Penguins, Bonk, and Fwog.
These tokens helped boost the Solana price, which jumped to $125 on Saturday. Crucially, they boosted the ecosystem, with the volume on DEX networks like Orca, Raydium, Meteora, and Jupiter surging to nearly $2 billion in the last 24 hours and $14 billion in the past seven days.
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There are two main reasons for the resurgence of these tokens. First, their sharp decline from all-time highs made them attractive bargains. As such, they have bounced back as investors buy the dip.
Second, they have rebounded as hopes of a Federal Reserve put rise as recession risks rise in the United States. In a note to the FT, Susan Collins, a Fed official, said:
“The core interest rate tool we use for monetary policy is, certainly not the only tool in the toolkit and probably not the best way to address challenges of liquidity or market functioning,”
Analysts believe the Fed will implement at least three interest rate cuts this year, exceeding the two initially indicated by officials. If this happens, risky assets, especially meme coins, will be some of the best performers. This explains why the US dollar index has plunged.
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