Why Meme Coins Dogecoin and Shiba Inu Were Surging on Saturday
A broad surge in coins and tokens is compounded by renewed interest in "fun" coins.
Many top coins and tokens continued their rise on Saturday, as the cryptocurrency boom of the past few days continued into the weekend. Two of the most highly-capitalized crypto memes, Dogecoin -4.80% and Shiba Inu -4.00%, are joining the ride. A rising crypto tide, as we have seen with rallies like this, lifts all boats. There are recent signs that inflation is falling, leading to speculation that the Federal Reserve may slow down or stop interest rate rises. Cryptocurrencies usually fall under this second category. Meme coins, which have very little practical value, are speculative. This is largely due to Bonk, a new token that sits on Solana's blockchain. Bonk attracted a lot of attention immediately, due to the fact that its developers released 50 trillion tokens in a recent drop -- half of its total supply. This wild volume made Bonk a major player in the meme coin market and attracted much attention. Meme coins are largely hyped and speculated because they have no practical utility. These market segments are lively and exciting due to the emergence of Bonk. However, investors should remember that there isn’t much underpinning these assets. Eric Volkman does not hold any position in any of these stocks. The Motley Fool recommends Solana and has positions in it. The Motley Fool follows a disclosure policy.