The Rise of Dogecoin Amid Market Optimism
Dogecoin (DOGE) experienced a significant surge of 7% in value as major cryptocurrencies rallied on Monday. This boost was largely driven by renewed hope surrounding the U.S. tariffs scheduled for April 2, which are now anticipated to be less aggressive than initially expected.
Recent reports indicate that President Donald Trump’s proposed “reciprocal tariffs” may focus on specific imports rather than applying broadly. Some countries might even be exempt from these tariffs, and existing metal levies may not be compounded. This news has contributed to a more positive sentiment in the market.
Market Reactions to Trade Tariffs
The tariffs proposed in February had previously unsettled financial markets, causing a sharp decline in stocks and cryptocurrencies alike. Bitcoin (BTC), for instance, plummeted 17.6%, falling below the $80,000 mark from its peak in January.
Last week, the Federal Reserve adjusted its economic outlook by raising inflation forecasts while lowering growth projections. These changes are largely attributed to Trump’s trade policies. However, the Fed characterized the inflation driven by tariffs as temporary and reiterated plans for two rate cuts in 2025, which has helped bolster riskier assets.
Memecoins Lead the Charge
The anticipation of milder tariffs has sparked a wave of optimism across the market, particularly in the memecoin sector. Alongside Dogecoin, other memecoins such as Pepecoin (PEPE), Mog (MOG), and Floki (FLOKI) have also seen gains of over 5% within the last 24 hours. According to CoinGecko data, the average increase in the meme sector is around 5.6%.
In comparison, Bitcoin, Solana’s SOL, and XRP only managed a 3% increase, while the broader CoinDesk 20 (CD20) index rose by 2.7%. Memecoins are often viewed as speculative assets that react more dramatically to trends in the overall crypto market, making them appealing to retail traders searching for high-risk, high-reward opportunities.
AI Tokens Remain Steady Amid Bubble Concerns
In other areas of the cryptocurrency market, AI tokens have shown stability despite concerns about a potential bubble. Alibaba’s Joe Tsai recently expressed worries about over-speculation in the AI sector during an HSBC conference in Hong Kong. He noted, “I start to see the beginning of some kind of bubble,” particularly highlighting the influx of capital and new funds aiming to invest in AI.
Despite these concerns, the AI category has increased by 4.5% in the past 24 hours, according to CoinGecko data. NEAR Protocol, the largest AI token by market capitalization, has remained flat in trading today but has gained 14% over the past week, buoyed by collaborative developments between Coinbase and leading AI companies.
Notable Performers in the AI Space
The IP token from Story has also shown impressive performance, rising by 8% in a single day. The project is actively securing intellectual property from both Hollywood and K-Pop stars to leverage on its blockchain. Story aims to provide rights holders with a means to adapt and thrive amidst the AI revolution by creating frameworks for licensing their content for AI training.
In conclusion, as the cryptocurrency market reacts to potential easing of trade tensions and shifting economic forecasts, both Dogecoin and AI tokens are demonstrating resilience and growth, captivating the attention of investors and traders alike.
