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This year cryptocurrencies are outperforming stocks and commodities.
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Most coins, including Bitcoin and Ethereum, have risen by more than 100%.
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Sales of Shiba Memu tokens are accelerating as demand grows.
Cryptocurrencies have been the best-performing assets this year. The price of Bitcoin has increased by more than 120% so far this year, while the Nasdaq 100 technology index and gold have risen by 48% and 10% respectively. Smaller-cap coins such as THORChain (RUNE), Injective (INJ) and Solana are appreciating rapidly.
Why the cryptocurrency bull run is happening
There are three main drivers behind the cryptocurrency rally. First, Bitcoin is being driven higher by a trend known as TradFi entering crypto — large traditional finance firms are moving into the crypto sector.
Prominent participants include major asset managers such as BlackRock (the world’s largest asset manager), Invesco, Ark Invest and Fidelity, which have filed applications with the U.S. Securities and Exchange Commission (SEC) for spot Bitcoin ETFs.
Additionally, other institutions like the London Stock Exchange (LSE), ANZ Bank and JP Morgan have embraced the idea of tokenization. Tokenization is the process of converting real-world assets (RWAs) into digital tokens.
Second, there is a growing expectation that the Federal Reserve may have finished raising interest rates. At its last two meetings it held rates steady, and officials have signaled a pause.
Recent economic data showed U.S. inflation falling from 3.7% in September to 3.2%, with core inflation easing to 4.0%. With a cooling labor market and lower crude oil prices, it’s increasingly possible the central bank will stop hiking rates. Analysts at UBS recently hinted the Fed could begin cutting rates in 2024.
Third, Bitcoin supply dynamics are tightening. Exchange reserves of Bitcoin have fallen to their lowest levels in five years ahead of the upcoming halving. With demand remaining strong and circulating supply constrained, upward price pressure is likely.
If Bitcoin rises further, that typically increases appetite for other altcoins such as Ethereum and Solana, amplifying gains across the crypto market.
Shiba Memu posts strong performance
Meanwhile Shiba Memu, a meme-coin project that incorporates some artificial intelligence (AI) features, is showing promising traction. According to the project’s website, developers have already raised over $4.5 million from global investors. The token can be purchased here.
Shiba Memu aims to reshape the meme-coin space by building a platform with AI-driven capabilities. Planned features include natural language processing (NLP), market sentiment analysis, video and audio recognition, and predictive analytics.
The project intends to leverage these AI tools to automate and scale its marketing efforts, which the developers say will make Shiba Memu more effective than competing meme coins. They hope Shiba Memu will outperform tokens like Shiba Inu and Bonk.
The SHMU token could perform well if the broader crypto rally continues. Meme tokens have returned to the spotlight during this cycle: Floki Inu has risen by more than 100% this year, while Bonk and other memecoins reached multi-million-dollar market caps. Other notable meme coins include Pepe and Taboo Token.
Historically, meme coins often thrive during strong bull markets. For example, Shiba Inu became a major player in the sector when Bitcoin reached its record highs.