Asia’s Friday Market Sees Memecoins Surge as Risk Appetite Returns
In a significant turn of events in Asia’s Friday market, dog-themed memecoins like SHIB, BONK, and FLOKI have experienced substantial gains, with SHIB and FLOKI up by 15% and BONK leading the pack with an impressive 17% increase. This surge is fueled by a return of risk appetite among investors, who are now more willing to take on high-risk investments.
Conflux’s CFX Sees 18% Rise Amid China Beta Assets Focus
Conflux’s CFX has seen an 18% rise following news of liquidity injection by the People’s Bank of China. Traders have been focusing on assets perceived as ‘China beta’ like CFX, dubbed the ‘Chinese Ethereum’, especially after its new support for stablecoins through a partnership with WUSD. This development has led to increased interest in CFX and other Chinese-based coins.
Bitcoin and Ethereum Experience Mixed Results
Bitcoin (BTC) has risen by 3%, trading above $65K, while Ethereum (ETH) experienced minor outflows but still gained 4% over the week. The U.S. spot bitcoin ETFs saw one of their largest inflow days at $365 million, predominantly into ARK’s ARKB.
Market Digests Recent Liquidity Injection from China
The market is currently digesting the recent liquidity injection from China’s central bank, which has led to a focus on coins perceived as ‘China beta’. Rick Maeda, Research Analyst at Presto Research, noted that "within this series of rotations in search of the next narrative that explored verticals such as AI and memecoins, the China stimulus news from Tuesday made traders focus on coins perceived to be China beta, such as $CFX and $PHB which have both outperformed."
China Beta Assets: A New Narrative?
Maeda continued, "It remains to be seen if this is a new regime here to stay or the market grasping for a narrative-based trade." The focus on China beta assets suggests that investors are looking for opportunities in emerging markets and are willing to take on higher risks.
Improving Funding Rates Indicate Market Recovery
HashKey OTC CEO Li Liang pointed to improving funding rates as a sign of market recovery. "Leading the gains are the SOL and BTC ecosystems, indicating a strong focus on meme coins as overall liquidity grows," he said.
Meme Coins Gain Popularity
Meme coins have gained significant popularity in recent times, with SHIB and FLOKI leading the pack. The community-driven nature of these coins, which often feature humorous and relatable content, has contributed to their success.
Stablecoins and the Recent Surge
Aside from the liquidity-induced market moves because of the perception that Conflux is the ‘Chinese Ethereum’, traders are also looking favorably on a recent announcement that the protocol has launched support for stablecoins through a partnership with WUSD. This development has led to increased interest in stablecoins, which are now being seen as a safe-haven asset.
Dog Memes Lead Market
The return of risk appetite has led to dog-themed memecoins leading gains in the broader crypto market. Shiba Inu (SHIB) and Floki (FLOKI) zoomed as much as 15%, while Solana-based Bonk (BONK) led sector gains at 17%. Some lesser-known dog-themed tokens based on the lesser-used Bitcoin Runes protocol also rose, indicating investors were ready to take more riskier bets.
Memecoin Market Soars
The memecoin market is so hot that even lesser-known coins are catching bids. DOG is up 14% and back over $300M, while RSIC is +10% to $62M. PUPS is even at $50M but up 100% on the week, and WADDLE WADDLE is top mover +70% to $3.35M.
ETFs Continue Positive Inflow Run
Elsewhere in crypto, bitcoin (BTC) is up 3% as it continues to trade above $65K. U.S. spot bitcoin ETFs had a monster day of inflows with $365 million, making it one of the largest days on record and bringing the weekly inflow to over $600 million.
Most of the Day’s Inflow Focused on ARK’s ARKB
Most of the day’s inflow was focused on ARK’s ARKB ETF at $113.8 million, followed by BlackRock’s IBIT at $93.38 million, and Fidelity’s FBTC at $74 million.
ETH ETFs See Outflows
However, ETH ETFs didn’t have the same market interest, as they saw outflows of nearly $675,000. Ether (ETH) is up 4% in the last week, according to market data, versus 2% for BTC.
As the market continues to digest the recent liquidity injection from China’s central bank and the surge in meme coins, it remains to be seen if this is a new regime here to stay or the market grasping for a narrative-based trade.
