Popcat Surges 34% Amid Positive Market Sentiment and News

• Popcat achieved a peak value of $0.8784 this Thursday morning, marking a 34% increase from its 24-hour low.
• Positive market dynamics, Bitcoin’s rise to $62K, and the Solana Seeker announcement contributed to the meme coin’s ascent today.

In the wake of the US Federal Reserve’s interest rate cut announcement, Popcat (POPCAT) has emerged as one of the standout performers in the cryptocurrency landscape. The cat-themed token saw a 34% price swing following the news.

Performance of Popcat

Popcat rose from a low of $0.6556 to a high of $0.8784, stabilizing in the $0.87 range by 8:40 AM UTC, thereby securing around 23% of its gains over the last 24 hours. Additionally, its daily trading volume surged by 54%, with $153 million worth of the cryptocurrency transacted between DeFi wallets.

Meanwhile, the progress of the meme coin has boosted the market capitalization of its circulating supply of 979.97 million to $851.67 million, placing it among the top 75 cryptocurrencies by market valuation during this timeframe.

Popcat also exhibited remarkable performance on longer timeframes. Its price increased by 30% over the week and by 74% over the month. Year-on-year, the token has experienced an astronomical growth of 5,254%.

The latest surge in the meme coin’s value has narrowed the distance between its current trading value and its all-time high of $0.9976 achieved two months ago to just 12%.

Reason Behind the Price Action

The cryptocurrency market reacted favorably to the US Federal Open Market Committee’s (FOMC) decision to reduce interest rates by 50 basis points (bps) to a range of 4.75%-5%. This development facilitated Bitcoin’s (BTC) rebound to the $62K level and shifted investor sentiment from a cautious approach yesterday to a more mixed sentiment today.

Lower interest rates enable businesses to reduce borrowing costs while they expand capital, hire more employees, and invest more in operations. Conversely, such rates often deter investors from low-yielding investments, steering them towards high-yield, higher-risk options such as cryptocurrencies.

Coinglass’ current data supports this narrative, showing that short liquidations outpaced long positions by $57.95 million. Of the $203.43 million in crypto liquidations over the past 24 hours, short liquidations totaled $130.69 million compared to $72.74 million in long liquidations.

Popcat has undoubtedly capitalized on this trend. Furthermore, being a Solana-based token, it also benefited from the excitement within the Solana (SOL) ecosystem following the announcement of the Solana Seeker mobile phone.

Additionally, Popcat is riding the wave of Binance’s launch of USD-margined POPCAT perpetual contracts. This product, available for 24/7 trading on the platform, features a leverage of up to 75x and a maximum funding rate of +2.00% / -2.00%.