2 cryptocurrencies that could dwarf Shiba Inu

One is a market leader. The other is an up-and-coming player.

| More on:
Rising rocket with dollar signs.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Shiba Inu is known for two things: Its mascot, the Shiba Inu dog. And its jaw-dropping 2021 performance. The cryptocurrency surged 45,000,000% last year. It's pretty much impossible to predict that sort of enormous short-term gain. But there are elements that can help us pick potential long-term winners in this dynamic market.

When I say winner, I'm referring to cryptocurrency players that have what it takes to attract more and more users and investors. And that eventually should lead to an increase in market value. The following two players could dwarf Shiba Inu over the long term. They offer more real-world utility. Both of the following players are blockchains that can host decentralized applications (dApps). And, unlike Shiba Inu, they aren't limited by a massive circulating supply of tokens. Let's check them out.

1. Ethereum

Ethereum (CRYPTO: ETH) already is a leader in the cryptocurrency market. It's the second largest by market value after Bitcoin. But Ethereum has room to grow. And that could happen soon. Here's why. Ethereum right now is tackling its biggest problems: transaction speed and fees. The crypto player is in the middle of a major upgrade.

The idea of the upgrade is to carry out transactions more quickly -- and that will reduce congestion and costs users pay to complete operations on the network. Part of this involves a switch from the proof-of-work validation process to proof-of-stake. This puts validation power in the hands of those who have the biggest stake in Ethereum. And it eliminates the need to use tons of computer power to validate. This means an extra advantage is a greener platform.

Ethereum expects to switch over to proof-of-stake in the third or fourth quarter of this year. Then, it aims to introduce sharding next year. These chains relieve congestion on the main network. The result of the complete upgrade? Ethereum will go from today's average of about 15 transactions per second to more than 100,000.

As I mentioned above, coin supply won't hold Ethereum back from gains. Circulating coins total about 120 million. That's compared to 549 trillion for Shiba Inu. Ethereum -- unlike Shiba Inu -- has room to grow in value without reaching an impossibly high market capitalization.       

2. Cardano

One of Ethereum's co-founders went on to launch Cardano (CRYPTO: ADA). So, we can count on a lot of the same quality in this younger player. What makes Cardano special? First, it already uses proof-of-stake to validate transactions. So, it's already pretty fast. It can handle 250 transactions per second. And software engineers are working on a scaling solution that could greatly increase speed. 

Another positive is the way work on Cardano is unfolding. The blockchain only launches an update or something new after a peer review process. Of course, this slows down progress. But the big plus here is it avoids technical problems down the road. Once work on Cardano is complete, the system may be more reliable than other blockchains that have moved more quickly.

Right now, software engineers are working on the final two stages of Cardano development. The roadmap includes a total of five stages. The goal is to create a completely self-sustaining, decentralized system. Last fall, Cardano's smart contract functionality launched. Right now, more than 2,600 smart contract scripts in the Plutus language exist on the network, according to Adapools.org.

Like Ethereum, Cardano's growth isn't limited by token supply. Cardano's tokens in circulation total about 33.7 billion. So, Cardano could increase by five, for example, and still maintain a reasonable market value. All of this means investors in Cardano today have the opportunity to get in early -- and watch the blockchain grow. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Should you invest $1,000 in Latin Resources right now?

Before you buy Latin Resources shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Latin Resources wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Adria Cimino has positions in Ethereum. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Ethereum. The Motley Fool Australia owns and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. 

 

More on International Stock News

A woman holds a soldering tool as she sits in front of a computer screen while working on the manufacturing of technology equipment in a laboratory environment.
International Stock News

Prediction: This artificial intelligence (AI) stock will be worth $5 trillion in 3 years

Let's take a closer look at the catalysts that could propel this stock toward that valuation.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
International Stock News

This Artificial Intelligence (AI) chipmaker just got a game-changing boost from Amazon, and Nvidia investors should be paying close attention

Amazon just made a notable investment in Nvidia's top rival.

Read more »

Happy man working on his laptop.
International Stock News

A once-in-a-decade opportunity: Here's why I'm buying Alphabet stock like there's no tomorrow

Alphabet's stock rarely gets this cheap, and right now could be a once-in-a-decade opportunity to scoop up shares at a…

Read more »

A woman looks questioning as she puts a coin into a piggy bank.
International Stock News

Is Warren Buffett's Berkshire Hathaway the smartest investment you can make today?

So, with all the uncertainty, is Berkshire Hathaway the smartest investment you can make today?

Read more »

Warren Buffet
International Stock News

7 ways Warren Buffett changed my investing approach

I'm a big fan of Warren Buffett, and have been for many years.

Read more »

iPhone with the logo and the word Google spelt multiple times in the background.
International Stock News

Down 12% this year, should you buy Alphabet stock?

The Google owner is underperforming the Nasdaq Composite, which has rallied in recent weeks.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
International Stock News

Missed out on Apple in 2012? Buying Nvidia stock today could be your second chance

By now, it's clear that artificial intelligence (AI) is the next major technology platform.

Read more »

Robot humanoid using artificial intelligence on a laptop.
International Stock News

3 reasons Amazon stock looks like an incredible bargain right now

Here are three reasons Amazon stock looks like a rare bargain at current levels.

Read more »