Historically, the stock market is one of the greatest wealth creators on the planet. There have been short periods of time where housing, gold, or other commodities have outperformed stocks, but no other investment vehicle has delivered a higher average annual return over the long run than the stock market.

But in the short run, cryptocurrencies have emerged to leave the broader market eating their dust. The most jaw-dropping outperformance can be seen from meme coin Shiba Inu ( CRYPTO:SHIB ), which launched at the beginning of August 2020.

Over the past 15 months, the benchmark S&P 500 has gained a healthy 39%. Meanwhile, Shiba Inu’s SHIB tokens have gained (I hope you’re sitting down for this…) 16,119,508%, based on a price of $0.00008221 per token. That’s not a typo. That’s a gain of better than 16.1 million percent in 15 months. The Japanese Shiba Inu dog breed has inspired a couple of successful cryptocurrencies. Image source: Getty Images. Shiba Inu’s short-term gains are historic, but its future looks bleak

How on Earth does an investable asset rise over 16,100,000% in a little over a year? For SHIB, it’s a confluence of factors . In no particular order: More cryptocurrency exchanges are allowing SHIB to trade on their platforms. More accessibility means improved liquidity, better brand recognition, and a growing community.

The launch of decentralized exchange ShibaSwap in July 2021 will almost certainly encourage some investors to stake their coins. This should increase the average holding time for SHIB.

A lack of derivative options to bet against Shiba Inu has given it, and many other cryptocurrencies, an inherent buy bias that’s lifted valuations.

Yet, in spite of these life-altering gains, Shiba Inu has a fatal flaw: It doesn’t stand out or do anything particularly well .

The expectation with cryptocurrency projects is they’ll make financial and nonfinancial transactions faster and cheaper than existing infrastructure, and they’ll democratize the process so everyone can participate. While Shiba Inu may have that last part down, it’s not a standout network or payment coin. In fact, only around 100 merchants globally accept it as a form of payment despite the fact that it’s now the 10th-largest cryptocurrency in the world by market value.

Without any true competitive advantages or differentiating factors — sorry, Elon Musk’s tweets of his Shiba Inu-breed dog don’t count — Shiba Inu’s future looks bleak . Over the long run, these lesser-known cryptocurrencies can outperform SHIB

On the other hand, a number of under-the-radar cryptocurrencies look far more intriguing than Shiba Inu and may offer significant long-term upside. Keeping in mind that I remain highly skeptical of digital currencies as a whole, this crypto trio has far more utility and potential than Shiba Inu. Image source: Getty Images. Stellar

One off-the-radar cryptocurrency that’s consistently had my attention for years is Stellar ( CRYPTO:XLM ). As of Oct. 28, Stellar was the 25th-largest cryptocurrency, with a market cap of $7.9 billion.

What I’m looking for in financially focused blockchain projects are efficiencies that stand out. Using existing banking infrastructure, cross-border payments can take up to one week to validate and settle, which isn’t very efficient. With Stellar’s blockchain, more than 180 fiat currencies can be converted to Lumen coins (XLM, the protocol token on Stellar’s network), transferred across borders, and converted back into a preferred fiat currency. The time to completely validate and settle said cross-border transaction? A couple of seconds.

But speed isn’t the only advantage for Stellar’s blockchain. The average transaction costs 0.00001 XLM , which equates to $0.00000334 per transaction. To put this figure into an easier-to-understand number, it would take approximately 300,000 transactions on Stellar’s blockchain before a party would rack up the equivalent of $1 in fees.

And that’s still not all. Stellar’s development team claims the network can handle up to 3,000 transactions per second. Though this is far cry from the 24,000 transactions per second payment-processing giant Visa ( NYSE:V ) can handle, 3,000 transactions per second is an exceptionally high number for a digital currency-tethered blockchain.

Stellar has tangible partnerships , too. Back in 2017, it partnered with IBM to help facilitate blockchain-based cross-border payments for a dozen banks in the South Pacific region. More recently, in May, the Stellar Development Foundation announced it would be part of a collaboration by Visa and Tala to bring financially focused blockchain solutions to underbanked emerging markets. Image source: Getty Images. Nano

Another under-the-radar cryptocurrency that looks to have far more long-term potential than Shiba Inu is Nano ( CRYPTO:NANO ). According to […]

source 3 Under-the-Radar Cryptocurrencies With Far More Potential Than Shiba Inu

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