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5 cryptocurrencies with a brighter future than Shiba Inu




Dating back to the end of the 19th century, the stock market has reigned supreme. Although other asset classes have had their moment in the sun, such as homes in the 2000s, no investment funds have delivered higher average annual returns in the very long term.

But in the short term, it’s a completely different story.

A Shiba Inu puppy looks into the distance.

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

Shiba Inu has received more than 13,200,000%!

Over the last couple of years, dozens of widely followed cryptocurrencies have followed the broader market many times. It is an ultra-popular meme coin that leads the way, Shiba Inu (CRYPTO: SHIB).

As of late November 2, a single SHIB token would set an investor back $ 0.00006738. That’s close to seven thousandths of a penny! Still, it is a long way from where Shiba Inu traded on its debut day back in early August 2020 ($ 0.00 billion51). In just one shadow over 15 months, SHIB tokens have received 13,211,665%. If you invested $ 10 on August 1, 2020 and kept it, you are now a millionaire.

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

  • An increasing number of cryptocurrency exchanges show SHIB tokens for trading, which raises awareness and builds community.
  • The launch of the decentralized exchange ShibaSwap in July allows investors to bet their tokens and more importantly encourages them to hold SHIB for longer.
  • Elon Musk’s tweets nurture gains. Although Musk does not own Shiba Inu coins, he recently adopted a Shiba Inu puppy named Floki. Every time Musk tweets about his dog or breed, investors gather in SHIB.
  • With few opportunities to bet against Shiba Inu, it is a clear emotion-driven buying bias that fuels this race.
A visibly concerned person watching a fast rising chart on a tablet.

Image Source: Getty Images.

SHIB’s dream race will eventually implode

But on the back there is a list of reasons to believe that Shiba Inu will implode. For example, SHIB has virtually no use outside of a cryptocurrency exchange. You would think that the ninth largest cryptocurrency by market value would be accepted by more than about 100 companies, but that is simply not the case.

Shiba Inu also fails the snuff test when it comes to competitive advantage. This is to say that Shiba Inu does not stand out in terms of its ability to process transactions. It is not even the only successful cryptocurrency that has taken its inspiration from the Japanese Shiba Inu dog breed (Dogecoin did so too).

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

Even the story goes that Shiba Inu is in big trouble. Other payment coins that have had higher five- and six-digit percentages eventually lost more than 90% of their value.

A white toy rocket sat on top of a cluttered pile of coins and papers showing economic calculations.

Image Source: Getty Images.

These cryptocurrencies have a much brighter future than Shiba Inu

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

Ethereum

Ethereum (CRYPTO: ETH) is undoubtedly the most established cryptocurrency on this list, and also the one that generates the most real buzz. This is because Ethereum’s blockchain is the backbone of decentralized finance (DeFi). DeFi uses smart contracts on a financially focused blockchain to complete transactions that may otherwise be slowed down or stopped 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 benefits, the Enterprise Ethereum Alliance (EEA) has more than 100 members, all of whom aim to increase knowledge and use of Ethereum’s 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. Quite a few of the EEA members’ supply chain will benefit from Ethereum’s blockchain technology.

A silver physical Stellar Lumen coin with a rocket ship logo.

Image Source: Getty Images.

Stellar

Blockchain-based payment network Stellar (CRYPTO: XLM) is another cryptocurrency this skeptic believes 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 protocol token), transferred halfway around the world and converted back to the original fiat currency in seconds. The cost of completing the transaction? Only 0.00001 XLM, which amounts to $ 0.0000038 per transaction. It takes more than 263,000 transactions just to raise $ 1 in fees.

Apart from fast, affordable execution, Stellar has also had some real runs. It worked with IBM to test its cross-border payment platform with a dozen banks in the South Pacific region in 2017. It is also part of the collaboration with Visa and Speak to bring financial blockchain solutions to emerging markets where access to basic financial services is limited.

A person holding a glowing golden clasp surrounded by latticework representing the nodes of the blockchain.

Image Source: Getty Images.

Solana

Another digital currency with superior potential compared to Shiba Inu in the long run is Solana (CRYPTO: SOL).

Like Ethereum, the Solana blockchain is about including smart contracts and letting developers build decentralized applications (dApp). But unlike Ethereum, Solana brings a number of notable benefits to the table on the efficiency front. Solana’s proof-of-history protocol, which states that events are true without requiring validators to talk to each other, dramatically improves the speed at which transactions are processed. While Ethereum processes around 13 transactions per second, Solana can handle 50,000 or more transactions per second.

Similarly, Solana seems to have an advantage over Ethereum from a fee standpoint. When Ethereum’s network is locked in by transactions, payment fees can skyrocket. With Solana, the fees are often around $ 0.00025 per transaction. This means that it will take approximately 4,000 transactions to reach only $ 1 in fees. If this efficiency persists when scaling the network, Solana can take out a healthy share of dApp demand alongside Ethereum.

A pile of fan with one hundred dollar bills turns into digital currency.

Image Source: Getty Images.

Nano

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

The purpose of the financially focused blockchain is to speed up payment settlement times, dramatically reduce costs and democratize the process so that everyone can participate. This is exactly what Nano does with its blockchain with block grid. Instead of having a single blockchain, each user on Nano has their own blockchain they can add without having to compete with other users. This makes Nano’s network scalable and highly efficient – the average transaction is completed in less than one second.

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

A businessman touching an encrypted block that is part of a larger blockchain on a digital screen.

Image Source: Getty Images.

Cardano

Last but certainly not least, Cardano (CRYPTO: NO) seems to have a much brighter future than Shiba Inu.

Although Cardano has experienced development delays (what big blockchain project does not have it?), The developers have laid out a clear vision of the steps they will take to improve and expand the network. In the summer of 2020, the Shelley upgrade was released, which increased the number of nodes network participants could run. According to Shelley, the number of transactions on Cardano’s blockchain has increased from around 2,000 per day to more than 100,000 per day.

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

Provided that Cardano’s network can be significantly scaled and kept secure, which is what the developers are working on now, it could be a serious rival to Ethereum and Solana.

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





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