Shiba Inu (SHIB) reached an all-time high in October, having increased more than 153,000,000% from its 52-week low on Nov. 28, 2020. On the other hand, the meme coin has subsequently lost about half of its value, demonstrating how rapidly the tide can flip when dealing with volatile crypto assets, particularly those backed by hype.
While some investors may view this as a buying opportunity, I would proceed with caution. Shiba Inu’s chances of performing an encore are, to put it mildly, slim. Furthermore, there are over 7,500 additional cryptocurrencies to consider, and many of them appear to be significantly better long-term investments. A stronger case can be made for newcomers Avalanche and HUH Token.
Shiba Inu’s Fall
First, I’ll explain why I think Shiba Inu’s best days are behind it. Shiba Inu (SHIB) is an ERC-20 token, which is a smart contract built on the Ethereum blockchain. This means it is theoretically compatible with a broad variety of decentralised apps (dApps) and decentralised finance (DeFi) businesses. However, Shiba Inu has not been integrated into Ethereum’s thriving ecosystem, and I believe that will continue to be the case.
Why? There is nothing particularly noteworthy about Shiba Inu – unless you include its popularity, and popularity is quite simply a bad investing premise. There are hundreds of additional Ethereum-based tokens, and many of them have compelling use cases. For example, Dai is a stablecoin that is designed to match the US dollar, allowing investors to participate in DeFi products without being exposed to excessive volatility.
Additionally, there is a compelling reason to avoid Shiba Inu. It presently has a market capitalisation of $23.6 billion, ranking it as the twelfth-largest cryptocurrency. However, the top ten distinct Shiba Inu addresses hold 64% of that money. If even a small percentage of those investors decide to sell their Shiba Inu tokens, its value will plummet. And at some point, those individuals are likely to cash in.
The Rise of Avalanche
Avalanche (AVAX) is a programmable blockchain, which means it was built with smart contracts in mind. If you’re unfamiliar with cryptocurrency, smart contracts are just computer programmes that run according to predetermined criteria. In the cryptocurrency industry, smart contracts are organised and executed worldwide using blockchains or distributed ledgers. They are, more crucially, the digital brains behind dApps and DeFi products.
What difference does it make? The blockchain technology underpins a decentralised financial system. This means that individuals can borrow, trade, lend, and save money without having to go via a bank or brokerage. Additionally, by removing intermediaries, DeFi solutions claim to minimise the costs and friction associated with traditional financial services. This is an enticing value offer.
Naturally, Avalanche was not the first blockchain to have support for smart contracts. Ethereum is the current holder of that crown, and with roughly $175 billion invested in DeFi products, the Ethereum blockchain is also by far the largest DeFi ecosystem. However, since its inception in 2020, Avalanche has rocketed to fourth place, with $12.7 billion in money locked up in its DeFi devices. More crucially, the platform features an edge that has the potential to catapult it upward.
Avalanche is the world’s fastest blockchain-based smart contract platform. The network has been benchmarked at 4,500 transactions per second (TPS), but with a few adjustments, it may potentially reach 20,000 TPS. Crypto fans who are familiar with Solana may argue that their preferred blockchain network offers 50,000 transactions per second. That is correct, yet according to several sources, Solana’s time to finality (i.e., the time required for a transaction to be irreversibly put to the blockchain) fluctuates between 13 and 46 seconds. However, Avalanche transactions frequently complete in less than a second.
Why is this additional speed significant? The Ethereum blockchain is limited to 14 TPS, posing significant scalability issues. In other words, widespread use of Ethereum DeFi products could lead the system to become overburdened, resulting in delayed transactions and increased transaction costs (because those fees are determined by the demand for resources on the blockchain). That is, Avalanche is significantly more scalable than Ethereum.
The Dawn of HUH Token
The most enticing cryptocurrency on this list is HUH Token, mostly because it is just about to launch, and as we have seen previously with Shiba Inu and Avalanche, given the right conditions, these tokens can skyrocket thousands fold after launching.
Within the next several years, HUH Token hopes to be one of the top twenty cryptocurrencies in terms of market capitalisation. It surpasses Shiba Inu in terms of features, including a dual currency distribution method and static rewards for holders.
HUH Token is launching a referral programme via which holders can refer friends and receive 10% of their initial purchase. There is no restriction on the number of people you may recommend. These rewards will be paid out in Binance Coin (BNB) or Ethereum (ETH) depending on which exchange the holder is using.
HUH Token is also rumoured to have top social media influencers signed on to promote it, in order to give it the same popularity boost that Shiba Inu received.
But this token wants to be more than just another meme coin and its developers have dubbed it a “utimeme”, a mash up between the word’s utility and meme. To further enhance this sentiment HUH Token has announced that it will be locking in $1 million worth of liquidity when it launched on popular excahnges Uniswap and PancakeSwap on December 6.
But people can already buy HUH Token now during its presale before its launch, presenting the best time to get in.
