Better to buy: Shiba Inu or Solana?
Shiba inu (CRYPTO: SHIB) and Solana (CRYPTO: SOL) stand out as two of the biggest winners in the investment world in 2021. Solana’s SOL token has jumped over 10,000% since the start of the year, while the performance of the SHIB token throughout the stretch generated a staggering gain of nearly 42,000,000%.
But which one is most likely to have big wins in 2022 and beyond? Read on to see where two Motley Fool contributors are asking.
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The little dog token that could
Keith Noonan (Shiba Inu): While Shiba Inu’s earnings far exceeded Solana’s impressive returns in 2021, looking at their respective market caps tells a different story. The SHIB token has a market value of around $ 17 billion, while the SOL token has a market cap of around $ 55 billion.
The risk that SHIB’s valuation will be affected by the emergence of new meme tokens is certainly there, but Solana’s application-driven network also faces competition, and SHIB’s smaller market capitalization could help it out. show more explosive gains if the crypto market emerges from recent volatility. and settles again into another strong bullish phase. Shiba Inu is down over 60% from its all-time high, while Solana is down around 40% from its high.
The growing adoption and improved long-term outlook for Solana’s blockchain application building features has certainly helped its SOL token make money this year, but there’s a good chance that the action of Speculative investors played an even bigger role in the cryptocurrency’s incredible performance. It should be borne in mind that the vast majority of people who trade and hold SOL tokens have probably never interacted with the application building and running services of the underlying blockchain network – and will. probably never.
The fundamental value case for Shiba Inu may be less compelling because the token is limited to being a currency or speculative investment vehicle, and it is not supported by an application service network in the same way as the token. Solana’s SOL token. But at least in the near future, the two token prices will be largely determined by speculation, which may play a larger role in raising the token price of SHIB relative to that of SOL.
Too many advantages to ignore
Keith Speights (Solana): No, Solana doesn’t have a cute dog as a mascot. But this is probably the only way that he does not surpass Shiba Inu. There are simply too many advantages for Solana to ignore when comparing these two cryptocurrencies.
Probably the most important thing to know about Solana is that it is the fastest growing blockchain ecosystem on the planet. There are currently 879 projects built on the Solana blockchain. They include collections of unique digital assets known as “non-fungible tokens”, trade, games, and more.
Solana is ultra-fast, with the capacity to process up to 65,000 transactions per second. It is also very inexpensive, with transaction costs well under $ 0.01 for developers and users. Unsurprisingly, Solana ranks as the fifth largest cryptocurrency in the world in terms of market value.
Granted, Solana recently suffered a high-profile Distributed Denial of Service (DDoS) attack that raised concerns. Although the blockchain has remained online, the speed of its network has significantly decreased. However, the problem did not cause the developers to abandon it. Instead, on-chain development activity increased after the DDoS attack. Solana appears to have what it takes to survive and thrive for the long haul.
So what is the best buy?
For most investors looking to gain exposure to cryptocurrency and blockchain service spaces, Solana is probably the best option. Investors willing to take huge risks looking for short-term gains could still score wins with the SHIB token, but Solana’s app-building functionality suggests superior long-term risk-reward dynamics.
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Keith Noonan has no position in the stocks mentioned. Keith Speights has no position in the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.