5 cryptocurrencies with a better future than Shiba Inu

[ad_1]

Dating back to the late 1800s, the stock market reigned supreme. Although other asset classes had their heyday, such as housing in the 2000s, no investment vehicle has delivered higher average annual returns over the very long term.

But in the short term, that’s a whole different story.

The Shiba Inu dog breed has inspired big gains for crypto investors. Image source: Getty Images.

Shiba Inu won over 13,200,000%!

Over the past two years, dozens of widely followed cryptocurrencies have overtaken the broader market on several occasions. At the head of this charge is the ultra-popular coin, Shiba Inu (CRYPTO: SHIB).

As of late evening on November 2, a single SHIB token would cost an investor $ 0.00006738. That’s almost seven thousandths of a penny! Yet, we are a long way from where Shiba Inu traded on his first day in early August 2020 ($ 0.0000000051). In just over 15 months, SHIB tokens gained 13,211,665%. If you invested $ 10 on August 1, 2020 and kept, you are now a millionaire.

Shiba Inu’s historic gain is the result of several factors:

A growing number of cryptocurrency exchanges are listing SHIB tokens for trading, which increases awareness and strengthens the community. The launch of the decentralized exchange ShibaSwap in July allows investors to wager their tokens and, more importantly, encourages them to hold SHIB longer. Elon Musk’s tweets fuel the gains. Even though Musk doesn’t own any Shiba Inu parts, he recently adopted a Shiba Inu puppy named Floki. Whenever Musk tweets about his dog or breed, investors cram into SHIB. With few options to bet against Shiba Inu, there is a clearly emotionally motivated buying bias that is fueling this race.

Image source: Getty Images.

SHIB’s dream run will eventually implode

But on the other hand, there is a long list of reasons to believe that Shiba Inu is going to implode. For example, SHIB has virtually no use outside of a cryptocurrency exchange. You’d think the ninth largest cryptocurrency by market cap would be accepted by over a hundred companies, but that’s just not the case.

Shiba Inu also fails the sniffle test when it comes to competitive advantages. That is, Shiba Inu does not stand out when it comes to its ability to process transactions. It’s not even the only successful cryptocurrency to have adopted its inspiration from the Japanese dog breed Shiba Inu (Dogecoin has, too).

To add, Shiba Inu is constantly diluted by other blockchain projects. According to CoinMarketCap.com, there are around 13,500 cryptocurrencies, and that number is growing rapidly. To be frank, there are much more efficient and / or cheaper payment coin options than Shiba Inu.

Even the story says that Shiba Inu is in big trouble. The other payment coins with the higher five- and six-digit percentage all ultimately lost more than 90% of their value.

Image source: Getty Images.

These cryptocurrencies have a much brighter future than the Shiba Inu

Even as a cryptocurrency skeptic, I see a lot more potential and a brighter future for the following five digital currencies, compared to Shiba Inu.

Ethereum

Ethereum (CRYPTO: ETH) is arguably the most established cryptocurrency on this list, and also the one that generates the most buzz in the real world. This is because the Ethereum blockchain is the backbone of decentralized finance (DeFi). DeFi uses smart contracts on a finance-focused blockchain to perform transactions that might otherwise be slowed down or interrupted by financial institutions. These smart contracts, which are protocols designed to verify, enforce, and facilitate an agreement between two parties, are the heart and soul of what drives Ethereum.

In terms of real utility, the Enterprise Ethereum Alliance (EEA) has over 100 members, all of which aim to increase knowledge and use of the Ethereum blockchain. While we often think of blockchain in terms of its ability to speed up financial transactions (especially cross-border payments), it also has logistics applications. Many members of the EEA supply chain would benefit from Ethereum’s blockchain technology.

Image source: Getty Images.

Stellar

The Stellar blockchain-based payment network (CRYPTO: XLM) is another cryptocurrency that this skeptic says has a future.

Using today’s infrastructure, cross-border payments can take up to a week to validate and settle. With Stellar, fiat currency can be converted to Lumens (XLM, the network’s protocol token), transferred halfway around the world, and back to native fiat currency in seconds. The cost to complete the transaction? Only 0.00001 XLM, which equates to $ 0.0000038 per transaction. It takes over 263,000 transactions to accumulate $ 1 in fees.

In addition to fast and inexpensive execution, Stellar also had real-world execution. He worked with IBM to test their cross-border payments platform with a dozen banks in the South Pacific region in 2017. He is also part of the collaboration with Visa and Tala to bring financial blockchain solutions to emerging markets where the access to basic financial services is limited.

Image source: Getty Images.

Solana

Another digital currency with greater potential than Shiba Inu in the long run is Solana (CRYPTO: SOL).

Like Ethereum, the Solana blockchain is all about incorporating smart contracts and allowing developers to build decentralized applications (dApps). But unlike Ethereum, Solana brings a number of notable efficiency benefits. Solana’s Proof of History protocol, which establishes that events are true without requiring validators to talk to each other, dramatically improves transaction processing speed. While Ethereum processes around 13 transactions per second, Solana can handle 50,000 or more transactions per second.

Likewise, Solana appears to have an advantage over Ethereum from a fee standpoint. When Ethereum’s network gets bogged down in transactions, the fees associated with payments can skyrocket. With Solana, the fees are often around $ 0.000025 per transaction. This means that it would take around 4,000 transactions to hit just $ 1 in fees. If this efficiency holds true as the network evolves, Solana can carve out a healthy share of dApp demand alongside Ethereum.

Image source: Getty Images.

Nano

For something completely off the radar, look for Nano (CRYPTO: NANO) to completely outperform Shiba Inu in the long run. Nano is the 117th largest digital currency by market cap ($ 820 million, as of November 2).

The goal of the financially targeted blockchain is to speed up payment settlement times, dramatically reduce costs, and democratize the process to allow everyone to participate. This is precisely what Nano does with its block network blockchain. Rather than having a single blockchain, each Nano user has their own blockchain to add to without having to compete with other users. This makes Nano’s network scalable and highly efficient – the average transaction is completed in less than a second.

Another thing that stands out is Nano’s toll-free transactions. Nano’s consensus mechanism, Open Representative Voting (ORV), allows representatives to vote on the validity of individual blocks on the network. The ORV offers differentiation and, more importantly, keeps transactions free.

Image source: Getty Images.

Cardano

Last, but not least, Cardano (CRYPTO: ADA) appears to have a much brighter future than Shiba Inu.

While Cardano has experienced development delays (what great blockchain project doesn’t have?), Its developers have presented a clear vision of the steps they will take to improve and grow the network. In the summer of 2020, the Shelley upgrade was released, which increased the number of nodes network participants could run. After Shelley, the number of transactions on Cardano’s blockchain grew from around 2,000 per day to over 100,000 per day.

In September 2021, the long-awaited Goguen update was unveiled. Goguen launches smart contracts on Cardano’s network, paving the way for financial and non-financial dApps.

Assuming that Cardano’s network can be significantly expanded and secured, which the developers are currently working on, it could be a serious rival for Ethereum and Solana.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a premium Motley Fool consulting service. We are heterogeneous! Questioning an investment thesis – even one of our own – helps us all to think critically about investing and make decisions that help us become smarter, happier, and richer.

[ad_2]