Here’s why Bonk and Happy Cat prices have gone parabolic

November 13, 2024 at 3:17 pm

Edited by Jayson Derrick

Markets

Here’s why Bonk and Happy Cat prices have gone parabolic

Solana meme coins Bonk, Happy Cat, and Peanut the Squirrel were some of the best-performing cryptocurrencies on Nov. 13.

Peanut the Squirrel (PNUT) token surged by 300% in the last 24 hours, bringing its market cap to over $1.6 billion.

Bonk (BONK), the OG of Solana meme coins, jumped by 33%, while Happy Cat (HAPPY) jumped by 41%. The two have a valuation of $2.6 billion and $113 million, respectively.

These coins’ surge accelerated after the U.S. published the October inflation numbers that met analyst forecasts. The headline Consumer Price Index rose to 2.6%, while the core CPI remained unchanged at 3.3%.

While inflation has remained stubbornly above 2.0%, analysts expect that the Federal Reserve will maintain a dovish tone in the coming meetings. That’s because the bank is fully focusing on the labor market, which has deteriorated in the past few months.

Bitcoin surge boosts Bonk and Happy Cat

Bonk and Happy Cat prices also jumped because of the ongoing cryptocurrency rally, with Bitcoin (BTC) hovering around $90,000. Analysts believe it will be just a matter of time before BTC stages a strong comeback and reaches the resistance level at $100,000. One of the catalysts is that investors are still buying spot Bitcoin ETFs, with the iShares Bitcoin ETF reaching $40 billion in assets.

Meme coins often perform well when Bitcoin is in a strong bull run due to their cheaper prices, which make them more attractive investments. For example, in most cases, an investor who buys $10,000 worth of Bonk or Happy Cat will see better returns than one who spends the same amount on Bitcoin.

Meanwhile, the volume of these meme coins is still rising. Bonk had a 24-hour volume of $2.8 billion, much higher than its market cap of $2.7 billion. Its futures open interest jumped to a record high of over $27 million.

Happy Cat’s 24-hour volume also jumped to over $25 million, a trend that could continue when it gets listed on major exchanges. Most of its volume was occurring in popular Solana DEX networks like Raydium, Orca, and Meteora.

There is a likelihood that these meme coins will continue rising, especially after the recent election of Donald Trump. Trump has promised to turn the U.S. into the crypto capital of the world by focusing on friendly regulations.