The meme coin market continues to make waves, with coins like PEPE, Dogwifhat (WIF), and Bonk Inu (BONK) seeing strong performance. They are fueled by factors that crypto analyst Miles Deutscher believes will sustain this trend.

In a recent video, Deutscher highlighted two catalysts he sees as pivotal in driving meme coin momentum.

2 Catalyst That Could Sustain Meme Coin Dominance

First, stability in the Consumer Price Index (CPI) and the recent re-listing of PEPE on platforms like Robinhood and Coinbase. These events, Deutscher argues, contribute to meme coins’ resilience, with capital rotating into these assets as investor interest remains high.

CPI Stability Brings Optimism to Meme Coin Investors

The first catalyst Deutscher discusses is the latest CPI data, which registered inflation at a stable 2.6%. This figure met market expectations and came as a relief to investors who had been de-risking portfolios in anticipation of the report. According to Deutscher, the CPI’s alignment with predictions helped reassure investors, which created a ripple effect across the crypto market.

Despite a $900 million liquidation in the previous 24 hours, both Bitcoin and altcoins experienced positive price movements following the CPI release.

“CPI is higher, as inflation rises to 2.6%. First, the initial response is the Yields are falling and Bitcoin rallies upwards,” analyst Michael Van de Poppe commented.

For meme coins, which often draw retail investors during bullish cycles, this CPI-driven confidence was particularly impactful. Deutscher notes that this behavior echoes the pattern seen in 2021.

Then, meme coins like Dogecoin (DOGE) saw significant rallies as market conditions improved. He suggests that as inflation remains under control, meme coins have the potential to attract speculative capital from investors.

“With CPI out of the way, we’re seeing investors take on more risk, which bodes well for meme coins’ popularity,” Deutscher explained.

The CPI release reassures investors that inflation remains under control, indirectly benefiting meme coins by stabilizing the broader crypto market. As interest in traditional assets wanes, retail investors appear eager to return to meme coins.

Historically, these tokens outperform in risk-on environments. Deutscher believes this dynamic will continue to buoy the meme coin market. The optimism comes as investors search for assets with higher growth potential.

Robinhood, Coinbase Listings Increase PEPE’s Accessibility

The second factor fueling the recent rally in meme coins is the re-listing of PEPE on Robinhood and Coinbase. The relisting marks a significant milestone for meme coin accessibility.

These listings are particularly notable given that Robinhood, along with other major exchanges, had previously removed PEPE and other assets due to regulatory concerns. The US Securities and Exchange Commission (SEC) had branded several tokens as securities. This prompted exchanges to delist coins like PEPE under pressure.

However, as regulatory scrutiny has shifted, Robinhood recently re-listed PEPE, Solana, and Cardano, signaling renewed confidence in meme coins.

“Dear diary, today we listed PEPE on Robinhood,” the exchange said.

Coinbase quickly followed, adding PEPE to its roadmap. Deutscher views this as a reflection of changing regulatory attitudes in the US. He believes that this trend points to a broader acceptance of meme coins among exchanges, especially as the political climate around crypto regulation becomes less restrictive.

Deutscher relates this shift to a more favorable view from Republicans. Following Trump’s victory, Republicans are now less likely to target these digital assets than the prior administration.

“Republicans have won enough seats to control the US House, completing the party’s sweep into power and securing their hold on both chambers of Congress and the White House. Republicans earlier gained control of the Senate,” the Associated Press confirmed.

Deutscher argues that these listings also represent an opening for meme coins to gain mainstream traction. “With Robinhood and Coinbase ranking first and second on the App Store, having PEPE available is huge for retail interest,” he said, reiterating the significance of this exposure. As PEPE becomes available to a larger retail audience, its increased accessibility could drive higher trading volumes and expand its reach to new investors who may have been previously hesitant.

“PEPE getting listed on Robinhood and Coinbase gives me the same SHIB vibes from 2021,” renowned analyst Zack Humphries added.

A Combined Effect Propelling Meme Coins Forward

The CPI stability and exchange listings create a dual catalyst for meme coins, positioning them for potential growth in this cycle. Meme coins are typically driven by market sentiment and speculative interest, so these developments collectively create an environment ripe for growth.

In light of these factors, PEPE and other sector tokens could see further price discovery as they attract both retail and institutional attention. Deutscher’s analysis resonates with meme coin investors who have been eagerly awaiting signals for market optimism. He emphasizes the importance of holding conviction, advising meme coin investors to stay the course amid fluctuations.

“When you believe in a strong narrative, it’s key to hold steady – the price will eventually reflect the value,” he concluded.

Ultimately, as CPI stability reassures the market and accessibility widens with exchange listings, meme coins like PEPE could see a continued influx of capital. This would maintain their dominance in the crypto market’s high-return segment.