3 cryptocurrencies that crushed Shiba Inu in November
TFor much of 2021, cryptocurrencies have proven unstoppable. The largest digital currency in the world, Bitcoin, has almost doubled in value from where it started the year. Additionally, the overall value of all cryptocurrencies more than tripled to $ 2.62 trillion as of December 1.
Although there are now over 15,000 cryptocurrencies listed by CoinMarketCap.com, it is a dog-themed coin. Shiba inu (CRYPTO: SHIB) which caught the attention of investors.
Crypto investors flocked to dog-themed coins in 2021. Image source: Getty Images.
After going to the moon, Shiba Inu is now in free fall
At the start of the year, a SHIB token could be purchased for a microscopic amount of $ 0.0000000073. But on October 27, Shiba Inu had hit a record high of $ 0.00008841. Going from 10 zeros to four, it has generated a gain of over 121,000,000% since the start of the year. This means that investors who invested $ 1 in SHIB at midnight on January 1 would have been millionaires on October 27.
However, there has been a tide change over the past five weeks. In November, SHIB went from $ 0.00006697 to $ 0.00004744. This represents a drop of 29% in one month.
Why this sudden pessimism? To get started, look at history as a guide. With the exception of Bitcoin, almost every payment coin that generated a short-term gain of between 20,000% and 500,000% faced an equally sharp reversion of 93% to 99%. Even though the Shiba Inu community has plastered message boards with hype for months, the urge to lock in the earnings after an increase of over 50,000,000% is just too great for many to ignore.
Shiba Inu also lacks the utility and differentiation that you would want to see in a cryptocurrency that hovers just outside the top 10, in terms of market cap. Fewer than 375 merchants around the world accept SHIB as a payment method. It is also nothing more than an ERC-20 token built on the Ethereum (CRYPTO: ETH) blockchain, which means it’s tied to the same high transaction fees and processing slowdowns that are known to hit the popular Ethereum network.
This crypto trio toured the SHIB in November
While Shiba Inu lost 29% of its value in November, the most popular cryptocurrencies outperformed it. This includes Ethereum, which ended the month up 8%, and Bitcoin, which comparatively lost only 7%.
But in the crypto world, there are three digital currencies that absolutely crushed SHIB in November.
Image source: Getty Images.
Avalanche: 87% increase in November
The first is avalanche (CRYPTO: AVAX), who, true to his name, buried Shiba Inu with an 87% gain last month. This increase that has propelled Avalanche beyond Shiba Inu in terms of market capitalization appears to be a direct result of the enthusiasm surrounding its high-performance blockchain, as well as the real utility it can offer.
Avalanche is one of the fastest Layer 1 blockchain projects around. According to the development team, it operates thousands of nodes and can process more than 4,500 transactions per second (TPS), with a transaction finality of less than two seconds. In English, this simply means that sending money, files or data is done in less than two seconds. In comparison, the very popular Ethereum network can only handle around 13 TPS, with a transaction finality of more than six minutes.
In addition to being fast, Avalanche’s contract-powered smart grid offers compatibility that shouldn’t be a problem in attracting developers of decentralized finance (DeFi) and decentralized applications (dApp). Given that the Ethereum VM is already running on Avalanche, it seems obvious that Ethereum-based DeFi and dApp developers will consider migrating to take advantage of Avalanche’s higher transaction speeds and low fees.
But perhaps the most tangible reason AVAX skyrocketed in November is the strategic alliance formed mid-month between Ava Labs, which created the Avalanche platform, and Deloitte. The newly created “Close As You Go” cloud platform is designed to help national and local authorities streamline claims for eligibility and reimbursement after a disaster.
The real-world app of the Avalanche platform compared to Shiba Inu’s almost non-existent allure in the real world is night and day.
Image source: Getty Images.
The sandbox: up 332% in November
Another cryptocurrency that completely revolved around Shiba Inu in November is The sandbox (CRYPTO: SAND). He might have a playful name, but he wasn’t playing last month. SAND tokens, which are the platform’s main token, have more than quadrupled.
The main reason SAND gained 332% in November can be attributed to investor’s insatiable appetite for anything to do with the metaverse. The metaverse describes the next iteration of the internet that allows people to interact in a virtual 3D environment. The Sandbox is a metaverse-focused gaming platform that aims to reward players for creating virtual worlds. It is basically a game platform for winning.
The buzz around SAND increased last month after Meta-platforms‘ (NASDAQ: FB) announced the name change on October 28. Meta is probably best known for its social media affiliate Facebook and CEO Mark Zuckerberg. Zuckerberg has been very clear that Meta will step up its investments in the Metaverse over the coming year and well beyond. This effectively places The Sandbox at the heart of one of the most dynamic and potentially fastest growing global trends.
Additionally, unlike traditional gaming platforms, The Sandbox allows virtual creators to own their assets in the form of non-fungible tokens (NFTs). These NFTs can be used in a game or even monetized in The Sandbox marketplace.
It’s hard to say if the hype surrounding the Metaverse will pay off anytime soon, but it certainly looks like a more intriguing project than what Shiba Inu has come up with.
Image source: Getty Images.
Crypto.com Coin: Up 227% in November
A third cryptocurrency that completely crushed Shiba Inu in November is Crypto.com coin (CRYPTO: CRO), the protocol token of Crypto.com Chain (a decentralized blockchain developed by the company Crypto.com). After nearly hitting $ 1 per CRO, it fell to finish last month up “only” 227%.
There appear to be three reasons for Crypto.com Coin’s stellar November month. Without a doubt, the biggest catalyst was the announcement in mid-month that Crypto.com would pay $ 700 million for Staples Center naming rights over the next 20 years. Starting at the end of the month, the home of the Los Angeles Lakers (NBA), Los Angeles Clippers (NBA), Los Angeles Kings (NHL) and Los Angeles Sparks (WNBA) will now be known as Crypto. com Arena. Owning the naming rights to an incredibly popular sports site should help Crypto.com’s mission to increase the use of digital currency.
Second, Crypto.com launched a TV ad campaign featuring actor Matt Damon on October 28. Similar to securing the Staples Center naming rights, Matt Damon adds an identifiable star power that could compel other users to join Crypto.com’s financial platform. The company’s cryptocurrency application and Visa card currently serves approximately 10 million customers.
Finally, Crypto.com Coin holders can probably thank inflation for their big gains. Users have the option of wagering their Crypto.com Coin to earn up to 12% annual interest. Considering that the US inflation rate of 6.2% in October hit a 31-year high, the ability to earn a real return, well above the rate of inflation, might be considered very attractive at this time.
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Randi Zuckerberg, former director of market development and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of the board of directors of The Motley Fool. Sean Williams owns shares of Meta Platforms, Inc. The Motley Fool owns shares and recommends Bitcoin, Ethereum, Meta Platforms, Inc. and Visa. The Motley Fool has a disclosure policy.
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