Cat-Themed Memecoins Emerge as Preferred Risk-On Bets With 40% Surge in a Week

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.

Cat-themed memecoins are emerging as a new preference among risk-on traders, with tokens such as Popcat, MEW, MOG, and Simon's Cat seeing surges of up to 40% in the past week.

A bulk of the gains have come since Wednesday, following the U.S. Federal Reserve cutting rates by 50 basis points for the first time in four years, which has helped fuel prices of risk assets like bitcoin (BTC).

Cat memes have also performed better than their dog-themed counterparts, with tokens like DOGE and SHIB showing an average gain of 4% in the past 24 hours, compared to a 14% bump on cat tokens.

Some market makers now expect memecoins, alongside alternative tokens, to continue surging in the coming months.

“Memecoins are experiencing a surge largely due to the anticipation of increased liquidity following the Federal Reserve's recent 0.5% interest rate cut,” Alex Andryunin, founder of Gotbit Hedge Fund, known for backing memecoinds, said in a message to CoinDesk.

“Market expectations for lower rates have converged, and with the prospect of more liquidity entering the financial system, investors are adopting a bullish sentiment.”

“We anticipate 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,” Andryunin added.

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