2 Cryptocurrencies That Might Dwarf Shiba Inu
Shiba Inu (Shib 1.60%, Cryptocurrency has come a long way in a short time. What started as a pure joke two years ago skyrocketed in 2021 and many investors also expect it to generate massive gains in the future. According to a price forecast from crypto exchange Changelly, based on an analysis by social media Chatter, the average Shiba Inu owner expects the price of the coin to double in 2023 and quadruple by 2025.
I am not here to evaluate the accuracy of Changelly price predictions for Shiba Inu, but there are several cryptocurrencies on the market that should do even better over the next few years. In particular, I like what I see algorando (algo 3.39%, And polka dot (dot 0.91%, today. Let’s take a closer look at these high-quality crypto investments and see if they are a good fit for your portfolio.
Algorand: Like Ethereum on Steroids
Algorand is a smart contract platform for decentralized applications, such as Ethereum, This blockchain was created with network speed and low transaction fees in mind. Algorand’s fees currently run around $0.0004 per transaction, compared to Ethereum’s average transaction fee of $0.70. The network handled an average of 1.1 million transactions per day this week, which is well ahead of Ethereum executing 330,000 transactions per day. And it is here considering the new and improved Ethereum structure, not the slower and more expensive version that was in force until The Merge on September 15th.
Despite the many advantages of Algorand, the Ethereum platform has attracted a very large developer community. Time is an important factor here. Ethereum has been around since 2015 and the first Algorand transaction took place in 2019, making the original smart contract platform nearly twice as old as the Sharp challenger.
However, Algorand is currently working on a bridge protocol that will make its platform fully compatible with code developed for Ethereum. This tool won’t erase Ethereum’s advantage, but it will give app makers another platform option that can be adopted with minimal coding effort, allowing both systems to compete on an equal playing field.
Furthermore, Ethereum has reduced its carbon footprint by 99.95%, but Algorand is actually carbon-negative by design. This is a big selling point for projects that focus on their environmental impact.
And Algorand doesn’t have to beat Ethereum to be a successful investment. Its market cap today is only $2.7 billion, which is essentially a rounding error compared to Ethereum’s footprint of $163 billion. If Algorand can earn just one-tenth of Ethereum’s developer attention in the long run, the digital coin Ethereum should outperform Ethereum by a sixfold ratio. This growth opportunity is much more exciting than the limited utility of the Shiba Inu.
Polkadot: The Lifeline of the Web3.0 Redesign
The Polkadot blockchain network takes a different approach to smart contracts and digital transactions. Rather than trying to be the best at one or more of these tasks, Polkadot was designed to interconnect other crypto projects. This way, the Polkadot developer can take full advantage of the best qualities in each digital coin while avoiding its downsides.
This unique network design is combined with an advanced ecosystem. Through Polkadot’s Parachain Auctions and Crowdlon’s multi-tiered system, the platform provides direct financial support to innovators and their projects.
Polkadot’s revolutionary plan of attack makes sense when you consider the network’s history and goals. It was created by Gavin Wood, co-founder of Ethereum, and the Web3 Foundation. Long story short, Web3 as we know it is a revolutionary redesign of the Internet, and this vision of a blockchain-based future was designed around the Polkadot network.
I agree that Polkadot may not double in price next year or even quadruple by 2025, as the Web3.0 sea change may take a few years to become operational. However, as an important component of the next generation of the Internet, Polkadot has enormous long-term growth prospects. If Polkadot isn’t worth several hundred billion dollars in 10 years—up from $7.4 billion right now—I’ll have to buy a hat and eat it with a pinch of basil. I can’t say the same for the Shiba Inu, which I expect to fade away over time.
Anders Bylund has positions in Algorand, Ethereum, and Polkadot. The Motley Fool has a position and recommends Ethereum. The Motley Fool has a disclosure policy.