Why Dogecoin, Shiba Inu and THORChain are on the rise today

Meme tokens and other cryptocurrencies surged today due to more favorable economic conditions and some token-specific news. The price of the meme tokens Dogecoin (DOGE -0.19%) And Shiba Inu (SHIB 6.12%) At around 1 p.m., the price of the cross-chain cryptocurrency was trading higher by more than 5%, or nearly 10.5% THORChain (RUNE -1.77%) increased by about 10%.

Renewed interest

Cryptocurrencies appear to have benefited from renewed interest after the Federal Reserve cut interest rates by half a percentage point last week, setting the stage for a “risk-on” environment and potentially a weaker U.S. dollar. Cryptocurrencies, which are considered alternative currencies, tend to perform well when the dollar falls. Today the price is from Bitcointhe world's largest cryptocurrency, has surpassed $65,000 for the first time in about two months as investors become more optimistic about the soft landing scenario. Most of the market also appears to be benefiting from new stimulus measures announced by Chinese authorities this week.

Interestingly, economic data such as initial jobless claims and second-quarter gross domestic product data came in better than expected today, driving up Treasury yields.

But a new report from BlackRock Today it is said that some investors have begun to view Bitcoin as a “flight to safety” due to its independence from geopolitical events and currency risks. This is good news for crypto investors.

Also the huge payment platform PayPal announced yesterday that US traders on its platform can now buy and sell crypto from their accounts, adding to optimism. The company said in a press release that there is a lot of interest from businesses in cryptocurrency features. PayPal also said it will allow businesses on the platform to send and receive certain cryptocurrencies to and from eligible third-party wallets. Considering Paypal and Venmo customers already have these features in their digital wallets, this could lead to greater utility for crypto on one of the largest payment platforms in the world.

In more token-specific news, Shiba Inu appears to be surging thanks to an increase in the network's burn rate, which was recently able to burn millions of tokens in single transactions. There are huge amounts of Shiba tokens in circulation. So reducing the quantity would lead to better supply and demand dynamics.

Altcoins benefit

I think the main reason these altcoins are rising today is the rise of Bitcoin. As the largest and original cryptocurrency, Bitcoin serves as a proxy for the sector. Altcoins tend to be more volatile than Bitcoin, which is why they can experience larger fluctuations.

THORChain's ability to allow users to exchange tokens and assets across different blockchain networks offers interesting applicability. Ultimately, though, I'm not interested in altcoins or meme tokens at the moment. They are far too volatile and it is often difficult to understand a real investment case. Speculation seems to be the main driver for meme tokens like Dogecoin and Shiba Inu. I prefer to invest in some of the more liquid mainstream tokens like Bitcoin.