Altcoins to Buy, 3 Metaverse-Themed Tokens Outperforming DOGE, SHIB

Fibo Quantum

  • Shiba Inu coin nearly doubled last week to overtake Dogecoin as the 9th largest token by market cap.
  • However, crypto experts are divided as to whether the latest dog-themed meme coin is here to stay.
  • They break down why the token could take a hit soon and share 3 altcoins that are on their radar.

It’s a dog-eat-dog world out there in crypto land. 

Dogecoin (DOGE), despite being backed by billionaires Elon Musk and Mark Cuban, found itself on the losing side of a battle last week with rival Shiba Inu coin (SHIB).

After surging almost 96.3% in the past week, Shiba Inu coin is now the ninth-largest cryptocurrency with a

market cap

of $38.8 billion compared to Dogecoin’s $35.4 billion as of Monday afternoon, according to CoinMarketCap

With a valuation of almost $40 billion, the self-proclaimed “Dogecoin killer” is theoretically larger than companies like Robinhood, whose customers are petitioning the brokerage firm to list the latest joke token. 

“Both DOGE and SHIB started as meme coins, but the nature of SHIB has caused it to evolve into what they call ‘a vibrant ecosystem,'” Steve Ehrlich, co-founder and CEO at Voyager Digital, said in an email interview. “Because SHIB is an ERC20 token on the Ethereum blockchain, as opposed to DOGE which is proof-of-work, it has been able to have much more intrinsic utility, including a decentralized exchange and staking.”

However, Shiba Inu coin’s reliance on the Ethereum blockchain is not necessarily an advantage over Dogecoin these days, according to Joseph Edwards, head of research at Enigma Securities.  

“One of the long-term keys to DOGE’s success has been that it has an independent blockchain, and has had constantly just enough mining support that it’s never been vulnerable to any sort of attack,” Edwards said in an email interview.

Shiba Inu coin users also face challenges such as high transaction fees as the Ethereum network has seen heavy use recently. 

“If you want to move DOGE around, you can do it right now for basically free,” Edwards added. “SHIB, on the other hand, is entirely at the mercy of whatever the Ethereum network as a whole is having to pay, which means $100+ transaction fees as it stands, and that’s a problem that’s not going away any time soon.”

Edwards, who does not see Shiba Inu coin overtaking Dogecoin in the long term, also thinks that the former lacks the “minimal utility” that the latter has. In his view, even for a speculative asset, the utility factor is meaningful in terms of its long-term sticking power. 

While Dogecoin is accepted as a form of payment at the Dallas Mavericks for tickets and online merchandise, Shiba Inu coin has yet to find its real-world use case except for a French bistro in Paris so far. 

Shiba Inu coins likely to take a hit in the coming weeks 

As exchanges such as Binance open trading for the SHIB/DOGE trading pair, the race between the two top dog meme coins seems to be heating up. Voyager Digital’s Ehrlich thinks the “healthy competition in the market” will likely continue. 

“Both of these coins are largely driven by online communities of retail investors,” he said. “The long-term strength of these coins will be determined by utility, and so far SHIB is the fastest dog in that race. Of course, any coin with these sort of record-breaking gains may experience corrections along the way, but it looks like SHIB is here to stay.”

Indeed, Shiba Inu coin has gained a whopping 93,107,653.6% in the past year, according to Coin Gecko. For some investors, a price rally at this level, even for a valuable meme, is out of proportion.

Alex DiNunzio, the founder and CEO of NFT startup Jamb, thinks it’s only a matter of time before the bottom falls out for the token. “I don’t know when it’s going to happen, but it will. Maybe it goes up for a little while and then comes down,” he said in a Friday interview.

Enigma Securities’ Edwards thinks that a price correction could take place in the coming weeks. However, rather than a leverage washout, which is often seen in crypto, Shiba Inu is likely to experience spot selling because the volumes and open interest of the token on derivatives markets are still substantially below those of Dogecoin, he said. 

3 altcoins surging in the past week 

As much as Dogecoin and Shiba Inu coin have driven the momentum around dog-themed altcoins, the true winners in the past week are metaverse-linked tokens. 

“The altcoins of interest right now are essentially anything that can link into the ‘metaverse’ narrative that the Facebook rebranding has sparked off,” Edwards said. He is referring to Facebook’s recent decision to change its corporate name to Meta in order to focus on its metaverse mission. 

The news has sent tokens of virtual worlds Decentraland (MANA) and The Sandbox (SAND) skyrocketing 279% and 158.9% over the past week, respectively, but “there’s definitely still further room to grow there,” according to Edwards.

He adds that the really interesting plays in the space are smaller-cap tokens such as Solana-based metaverse game Star Atlas (ATLAS) where the tokens have started moving but are still only sitting at around $100 million to $300 million in market cap. The ATLAS token rose 48% in the past week, according to Coin Gecko

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