If you invested $1000 in Bitcoin, Dogecoin and Shiba Inu exactly one year ago, this cryptocurrency would give you the best returns today

The cryptocurrency market soared on Thursday, extending the surge sparked by the Federal Reserve's first interest rate cut in more than four years.

The rally was led by the popular dog-themed memecoin. shiba inuwhich shot up more than 20% in the last 24 hours, reaching levels not seen since mid-June.

What happened: The latest rally extended SHIB's year-to-date gains to 85%, outperforming coins with larger market capitalization such as bitcoin and Dogecoin.

But a year ago, things weren't so good. The dog coin struggled during the cryptocurrency bear market, losing 90% of its value from all-time highs.

Exactly one year ago, SHIB was priced at $0.000007256. So, $1,000 invested in memecoin would have generated 137,816,979 SHIB.

Today, the value of this stash is worth $2,621.27, indicating an increase of 162%.

In comparison, $1,000 invested in Bitcoin and Dogecoin exactly one year ago would have become $2,480 and $2,033, respectively, reflecting an increase of 148% and 103%.

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Why it is important: Since the announcement of the 0.5% rate cut last week, the total cryptocurrency market capitalization has increased from $2.21 trillion to $2.3 trillion at the time of writing.

In the past 24 hours, Bitcoin rose to $65,000 for the first time since August 1, and spot exchange-traded funds (ETFs) linked to the cryptocurrency recorded five consecutive days of net inflows since the Federal Reserve's decision.

Analysts at an investment management company. bernstein He said last week that rate cuts could revive cryptocurrency credit markets and boost sectors such as decentralized finance (DeFi).

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