Cat-Themed Memecoins Surge Following Federal Reserve Rate Cut

According to CoinDesk, cat-themed memecoins have experienced significant gains following a 50 basis point rate cut by the U.S. Federal Reserve, signaling a return of risk-on sentiment in the crypto market. Tokens such as Solana-based POPCAT, MEW, Ethereum-based MOG, and BNB Chain-based Simon’s Cat (CAT) have climbed up to 40% in a one-week period, with the majority of gains occurring since the rate cut announcement. This move by the Federal Reserve has fueled prices of risk assets, including bitcoin. POPCAT, a token tied to a meme of a cat with its mouth popped open, is nearing a $1 billion market cap. MOG has surged 70% in the past two weeks, driven by strong social media backing where the community often replies to posts with “mogging” and “mogged” to increase its visibility. The newly released CAT, linked to the Simon’s Cat comic series, has quickly become one of the biggest cat memes, seeing over $145 million in trading volume in the past 24 hours. Analysts predict continued growth in memecoins, fueled by anticipated liquidity increases and bullish market sentiment. Alex Andryunin, founder of Gotbit Hedge Fund, noted that memecoins are experiencing a surge largely due to the anticipation of increased liquidity following the Federal Reserve's recent interest rate cut. Market expectations for lower rates have converged, and with the prospect of more liquidity entering the financial system, investors are adopting a bullish sentiment. Andryunin added that the memecoin market could grow significantly over the next two months. The increased liquidity and a heightened appetite for risk may drive investors toward these high-risk, high-reward assets, potentially leading to a boom similar to previous cycles. Cat-themed tokens have emerged as a new cohort alongside dog-themed Dogecoin and Shiba Inu, among the biggest gainers in the 2020-2021 bull run. Their relatively smaller total market capitalization makes cat memes a stronger attraction than their dog-themed counterparts, with cat tokens seeing a 14% bump compared to a 4% average gain in the dog memes sector tracked by CoinGecko.