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Put meme coins like Shiba Inu behind you and explore these projects instead.
Key points
- Meme coins like Shiba Inu can be fun and produce extraordinary price gains, but they also carry a lot of risk.
- Avalanche, Cardano, and Clover Finance are all interesting projects with stronger fundamentals.
Shiba Inu (SHIB) is a meme coin that soared into people’s consciousnesses last year. It posted enormous gains and rose up the list of top cryptocurrencies, briefly overtaking Dogecoin (DOGE).
Both meme coins now sit in the top 20 cryptos by market capitalization. Some analysts believe these cryptos represent a new sector where social media and investment meet. Indeed, Dogecoin is starting to gain traction as a form of payment and is better known than many other cryptocurrencies.
However, meme coins are still extremely risky and unpredictable, even by normal crypto standards. They may be fun, but they don’t have the underlying utility of other crypto projects. This means they’re more likely to fall further during market crashes. For example, Bitcoin (BTC) and Ethereum (ETH) are both down around 40% from their all-time highs, and SHIB is down over 70%.
Here are three cryptos that could beat Shiba Inu in 2022 and beyond.
1. Avalanche (AVAX)
Avalanche is a smart contract crypto that gained over 3,000% last year. What sets these cryptos apart is that they are programmable and can host other blockchains and applications. Many grew in popularity last year as Ethereum, the dominant crypto in this space, struggled with network congestion and high fees.
The Avalanche ecosystem has already attracted a number of major decentralized finance (DeFi) projects. It boasts $11 billion in total value locked, which is the amount of money invested on applications on its network — putting it in fourth place, according to DeFi Llama.
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Avalanche is unlikely to gain another 3,000% but it still has strong potential and will likely outperform Shiba Inu in the long term.
2. Cardano (ADA)
Cardano and Shiba Inu are both cryptocurrencies, but that’s where the similarities end. These two projects are on opposite ends of the spectrum. Cardano takes a slow-and-steady approach to development. It has a clear purpose with a roadmap on how it will achieve its goals. It has a well-known leader and strong team with offices around the world.
In contrast, Shiba Inu is currently rushing to develop a metaverse, even though that wasn’t part of its original plan — there’s no mention of a metaverse in its white paper (called a woof paper). It feels as if Shiba Inu is jumping on the latest crypto bandwagon and only building a metaverse because they are popular. Its leader remains anonymous, going under the pseudonym Ryoshi, which in itself is a red flag.
The biggest risk with Cardano is that its dedication to getting things done right could mean it gets overtaken by newer cryptocurrency projects. It introduced its all-important smart contract capabilities last September. However, the launch was overhyped, and many investors were disappointed it didn’t herald a host of Cardano-based applications. This year will be crucial for Cardano as we’ll see the long-awaited launch of several apps.
3. Clover Finance (CLV)
Clover Finance is a decentralized platform that’s focused on interoperability and accessibility. Interoperability is the way blockchains communicate with each other, and it’s fundamental for the crypto industry. If blockchains can’t talk to each other, it would be like having an account with one bank that couldn’t transfer money to a different bank.
Clover’s fee system also stands out. Not only do frequent users pay lower fees, but the system also offers what it calls a “gasless end user experience.” This means applications can build fees into the costs they quote by paying fees on behalf of their users. One issue with Ethereum-based DeFi apps right now is that users often get hit with huge fees when they try to finalize a transaction. Since these costs aren’t clear from the outset, it can be a big impediment for newer investors. Clover apps can avoid these kinds of surprises.
It is very early days for this project, which is currently ranked at 385 in terms of market cap. Smaller-cap cryptos carry more risk, but also offer the potential for higher returns. There are no guarantees, and the decentralized finance space is extremely competitive. But it has a lot more room to grow than most meme coins, as it’s solving an important crypto problem.
Bottom line
The cryptos above are all available from top cryptocurrency exchanges. They are well placed to survive a prolonged period of depressed prices, and could perform well in the long term. Bear in mind that all cryptocurrencies carry risk, which is why it’s advisable to only invest money you can afford to lose.
What happened to cryptocurrency prices last year was extraordinary. Several projects gained 5,000% or more as crypto took huge strides toward mainstream adoption. That level of growth would have been hard to sustain even if we hadn’t entered a different — and more risk averse — economic climate. As a result, 2022 may not bring the incredible gains we saw last year.
For a lot of new crypto investors, meme cryptos like Shiba Inu or Dogecoin are an accessible way to buy crypto for the first time. However, there are many coins with much more promise. Now might be a good time to forget about Shiba Inu and instead look at cryptos with stronger fundamentals.
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