The Asian crypto markets turned bullish on Friday, driven by double-digit gains from meme coins like Shiba Inu (SHIB) and Bonk (BONK), while Conflux (CFX) surged over 18%. This rally follows a significant liquidity injection by China’s central bank earlier in the week, which sent shockwaves through the crypto ecosystem.
Rick Maeda, a Research Analyst at Presto Research, noted the market’s shifting narrative. “After the initial rally in alts that took center stage last week, the market seemed to have been in rotation mode this week,” Maeda told CoinDesk. “Within this series of rotations in search of the next narrative that explored verticals such as AI and meme coins, 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.”
As traders reacted to China’s economic stimulus, Conflux, often referred to as the “Chinese Ethereum,” saw substantial gains. Market participants are also optimistic about Conflux’s latest partnership with WUSD, a stablecoin issuer based in Hong Kong. Although WUSD is a smaller player in the stablecoin space, its launch comes on the heels of similar announcements from Ethena Labs (UStb) and BitGo (USDS), boosting market sentiment around stablecoins.
Memecoins Drive Market Risk Appetite
Dog-themed meme coins captured the spotlight as Shiba Inu (SHIB) and Solana-based Bonk (BONK) jumped 15% and 17%, respectively. FLOKI, another popular dog-themed coin, also surged as market sentiment improved. Lesser-known tokens tied to the Bitcoin Runes protocol saw gains, signaling traders’ increasing risk appetite.
“Leading the gains are the SOL and BTC ecosystems, indicating a strong focus on meme coins as overall liquidity grows,” said Li Liang, CEO of HashKey OTC. “Meme coins on Ethereum, such as $PEPE and $SHIB, are also experiencing heightened interest from the market.”
Memecoins, while inherently speculative, thrive on community engagement, humor, and shared cultural references. Coins like SHIB and BONK attract traders seeking high-risk, high-reward opportunities when the market displays risk-on behavior.
ETFs Continue Positive Inflows
Meanwhile, in the broader crypto landscape, Bitcoin (BTC) posted a 3% gain, trading above $65,000. U.S. spot Bitcoin ETFs had a massive day, with $365 million in inflows, one of the largest on record. Leading the charge was ARK’s ARKB ETF with $113.8 million in inflows, followed by BlackRock’s IBIT and Fidelity’s FBTC.
While Bitcoin ETFs flourished, Ethereum-based ETFs experienced outflows of nearly $675,000, indicating a divergence in investor sentiment. Despite this, Ether (ETH) still posted a 4% gain over the past week, outperforming Bitcoin’s 2% gain.
What’s Next for Memecoins?
As the market continues to digest China’s liquidity boost, the meme coin sector remains a key area of interest. However, traders are closely monitoring whether this surge in dog-themed tokens is sustainable or if it’s part of a short-term rotation in search of the next big narrative. Either way, meme coins like SHIB, BONK, and FLOKI will remain at the center of this market mania, fueled by community enthusiasm and rising liquidity levels.
With Bitcoin ETFs continuing to attract institutional money and meme coins gaining momentum, the broader crypto market may be entering a new phase of speculative trading. How long this wave lasts, however, remains to be seen.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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