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2 Cryptocurrencies That Can Surpass Shiba Inu and Dogecoin in 2022

2 Cryptocurrencies That Can Surpass Shiba Inu and Dogecoin in 2022
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It’s been over 20 stellar months in the cryptocurrency market, even considering the crash late last week. From the lowest level of the epidemic in March 2020 to December 4, 2021, the total value of digital currencies increased more than 15 times to reach $2.3 trillion.

Although Big Two – Bitcoin And Ethereum – You get a lot of credit for these nominal winnings, it’s meme coins Shiba Inu (CRYPTO: gray hair) And Dogecoin (CRYPTO: DOGE) Which came out of nowhere to become the top 10 marginal coins, by market cap.

Shiba Inu-themed coins have made huge gains for cryptocurrency investors. Image source: Getty Images.

SHIB and DOGE both rose, but both are set for massive setbacks

Shiba Inu is the undisputed jaw dropper of 2021. With a token price close to 0.000036 USD as of the late evening of December 4th, Shiba Inu has returned over 49,000,000% year-over-year. This means that investors who put their money to work at SHIB at midnight on January 1st will now be millionaires for less than the cost of a cup of coffee.

Dogecoin’s gains have also been impressive, albeit not on the same level as Shiba Inu. DOGE tokens have gained nearly 9,600% since the standard Standard & Poor’s 500 It bottomed out on March 23, 2020. By comparison, the S&P 500 is up just over 100%.

Although there is a fair amount of hype behind Shiba Inu and Dogecoin, and their respective investor bases firmly believe that both coins have a future, history suggests that they are headed toward an epic comeback.

When I examined the performance of pay coins that gained at least 24,000% in a period of 10 to 30 months, I discovered that they all lost 93% to 99% of their value once they reached their peak. Shiba Inu gained 121,000,000% in 2021, while Dogecoin was up more than 27,000% at one point in six months. Even with SHIB and DOGE respectively 59% and 76% below their all-time highs in 2021, it’s quite clear that both still have Long Fall path.

The thing about the pie is that none of the meme coins offer anything like a competitive advantage or widespread benefit. With tens of thousands of blockchain projects in some stage of development, there is nothing about any of the coins to suggest they will be winners in the long run.

A person uses a stylus to interact with a fast-rising coding scheme on a tablet.

Image source: Getty Images.

This crypto duo could outperform Shiba Inu and Dogecoin in 2022

But with Shiba Inu and Dogecoin losing their luster, other coins with real-world potential are set to hold them back and are likely to take their place as the top 10 token or fringe. Here are two digital currencies that could realistically end in 2022 with a larger market cap than SHIB and DOGE.

Algorand

The first cryptocurrency that can jump on each of the very popular meme coins is Algorand (encode: something). To give an idea of ​​the current situation, Dogecoin has a market capitalization of $23.2 billion, Shiba Inu has a market capitalization of $19.9 billion, and Algorand has a market capitalization of around $10.2 billion.

With over 15,000 cryptocurrencies listed on CoinMarketCap.com, differentiation, competitive advantage, and real-world potential is what will separate the winners from a sea of ​​short-term hype. In the case of Algorand, there are three important factors that should allow it to be successful in the long run.

First of all, its unique blockchain consensus mechanism is an improvement over traditional proof of stake. This mechanism, known as pure proof of stake, randomly and secretly selects small groups of ALGO reporters to vote on proposals and propose blocks. With this randomization applied, the developers of Algorand effectively ruled out the possibility of small groups of scammers disrupting the network.

Second, Algorand is fast. A quick check of its key metrics as of last weekend revealed a 4.39-second transaction finale and the ability to process 1,152 transactions per second (TPS). Compare this to Shiba Inu, an ERC-20 token built on the Ethereum blockchain, which is limited to 13 TPS and takes about six minutes to complete a transaction.

But the third and most important aspect of Algorand is the developers’ focus on blockchain interoperability. With so many companies developing a unique blockchain, there is a real possibility that they will not work with each other. Algorand is developing solutions that will allow different blockchain technologies to be intertwined. This makes Algorand a good bet to be successful in the business world.

Silver Stellar Lumen coin with rocket ship logo.

Image source: Getty Images.

excellent

Far from this duo, which is based solely on market capitalization, is excellent (CRYPTO: XLM). As of last weekend, Stellar had a market capitalization of $6.9 billion, placing it at number 27 on the list of the world’s largest cryptocurrencies.

Stellar represents all that is good in developing financially focused blockchain technology. With the current payment infrastructure, cross-border payments can take up to a week to be validated and cleared. With Stellar, fiat currency is converted into the Stellar blockchain protocol token, XLM (known as Lumen), transported to its destination, and re-converted to the chosen official currency. This process can be completed on average from four to five seconds.

Another thing that gives Stellar an advantage over the vast majority of its payment network competition is the cost of completing these transactions. Sending money from point A to B using Stellar costs 0.00001 lumens. With Lumens trading at $0.28 over the weekend, the actual cross-border transaction cost is just $0.0000028. In other words, it will take about 357,000 transactions before users earn a fee of up to $1. Compare that to the transfer fees that financial institutions can charge for cross-border payments and you will quickly realize the advantage that the financially focused Stellar blockchain brings to the table.

The exceptional speed and low cost of the Stellar blockchain has already led to some interesting real-world partnerships. This includes working with IBM And dozens of banks in the South Pacific region to test cross-border payments four years ago. He also drove Tala and Visa To partner with Stellar in an effort to expand financial blockchain solutions to emerging markets.

Stellar and Algorand may not make the social media hype like Dogecoin or Shiba Inu does, but they are two projects with a clear path to real-world significance.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

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