Meme coins among largest gainers following crypto market recovery after lower CPI inflation data

US CPI data showed positive feedback on inflation, causing the meme market to begin a recovery.
Top industry voices show displeasure toward meme tokens despite continued rallies.
PEPE, DOG, GME, BODEN among top gainers in the meme category.

Meme coins saw double-digit gains on Wednesday amid criticism from key crypto industry voices. Their rise follows the release of US CPI data revealing a drop in inflation, beating analysts' expectations.

Meme tokens surge following CPI report

The US Bureau of Labor Statistics (BLS) released the Consumer Price Index (CPI) data for May on Wednesday. The CPI declined to 3.3%, lower than estimates of 3.4%.

The reduced inflation sparked fresh hopes for the US economy but also impacted the price of several meme coins. Following the announcement, many meme tokens began to see a rally.

Also read: Solana-based meme coins' outlook improves, casting shadow over Dogecoin, Shiba Inu

PEPE, DOG, GME and BODEN were among the top gainers in the meme category and showed no signs of a decline.

Runes-based DOG-To-The-Moon (DOG) and GME meme coin — unrelated to the GameStop company — have experienced the highest surge among these tokens, rising above 20%. The significant rise in GME may have resulted from GameStop's recent stock sales, which netted about $2.14 billion for the company. Following the move, short-seller Citron Research announced it is no longer short the company's stock.

BODEN follows with a 13% rise, and PEPE with a 10% rise at the time of writing.

Despite the surge across meme coins, several key voices in the crypto industry have remained unimpressed by these tokens.

A recent X post by crypto designer OxDesigner challenged the very nature of this class of cryptocurrencies and whether it has any real value to the crypto community.

He commented on the dominance of meme coins so far and how they hold no real impact on the general crypto industry:

"Every cycle has expanded the functionality and reach of crypto:

+ decentralized, tamper-proof money

+ p2p, cross-border payments

+ programmable money

+ permissionless financial services

+ Digital asset ownership

These are net positives, in my opinion. But where do memecoins take us? There are no compelling visions of how they extend into or improve everyday life," stated OxDesigner.

Also read: Dogecoin, Shiba Inu on-chain metrics support price decline as meme tokens bleed

The comment also attracted the attention of Ethereum co-founder Vitalik Buterin.

* zk reputation/identity/credentials
* p2p cross-border payments (much lower fees and quickly improving UX this cycle)
* decentralized social
* prediction markets (actually usable this cycle)
* privacy
* enterprise apps via zk validiums
* zk + censorship resistant voting
— vitalik.eth (@VitalikButerin) June 12, 2024

The meme coin market stood out in May, recording one of the highest gains across crypto market sectors. This was characterized by the rise of celebrity meme coins and the return of meme stock trader Roaring Kitty.

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.