The Shiba Inu (SHIB 9.84%) The cryptocurrency is no longer writing the headlines, but many investors still pin their hopes on this meme coin for the next sector-wide bull run. It is still one of the 20 largest crypto names measured by market cap, with strong daily trading volume.
Unfortunately, I don’t see much real-world developer interest in the surprisingly capable Shiba Inu ecosystem these days.
Crypto-based app activity is on the rise, with the number of experienced developers contributing code to the GitHub code gallery nearly doubling over the past three years, according to Electric Capital’s latest developer report. But smart contract inventors Ethereum (ETH 0.67%) Completely dominates developer interest in every category Bitcoin (BTC -0.27%) A distant runner-up spot and everyone else far behind.
This report does not even mention the Shiba Inu. Nothing is happening behind that door.
On the other hand, many cryptocurrencies and blockchain networks are working hard to build a Web3 future. From personal banking to content publishing, many industries are ripe for disruption — and one token should rise as the online world undergoes this sea change.
Polkadot looks mighty delicious
Electric Capital went through a lot Polka dot (DOT -0.61%) projects. The Web3 Foundation’s official blockchain ecosystem is one of the most active developer communities not named Ethereum, and one of the fastest growing networks. Polkadot’s army of full-time developers tripled in three years, making it the largest app-writing platform behind Ethereum and Bitcoin.
In other words, consumers and investors will soon see a tsunami of Polkadot-based Web3 apps on their phones, computers, and other online devices. The polkadot connection may not always be obvious or highly promoted, but the network helps programmers get the most out of many different cryptosystems. It will be the silent force that holds the Web3 revolution together in SIM.
…but the token is a compromise
However, crypto investors have largely shut down Polkadot’s promising app-building activity and the DOT token has traded sideways compared to last year. Ethereum gained 80% during the same period while Bitcoin jumped 110%:
Polkadot price data by YCharts
However, the lack of investor enthusiasm does nothing to keep Polkadot from real-world use. And thus the value of the token is created. You know what they say about stocks being voting machines in the short run and weighing machines in the long run, right? The same idea is true for cryptocurrencies, and Polkadot is piling a ton of weight on the scales of the weighing machine as we speak.
I can’t wait to see what the price chart does when the first few killer apps open the floodgates for the Web3 era.
It’s time to go from playful puppy to Web3 pioneer
Shiba Inu differentiates itself from other meme coins with a strong technical platform and a community-driven system to develop the blockchain network itself. But the dog-themed marketing that helped it initially attract the spotlight seems to have been a liability lately. Shiba Inu is hard to take seriously, as the value of each digital coin is so small. 1 million Shiba Inu coins add up to $10 in today’s prices, and it’s hard to keep track of the zeros you’d expect after the decimal point.
Polkadot is on a different level when it comes to creating real long-term value. It runs a more sophisticated blockchain network, supported by multiple collaborative networks and passes information between different blockchain systems. Its market cap is twice the size of the Shiba Inu these days, and I expect it to rise in rank as Web3 conversion accelerates.
So while the allure of meme coins like the Shiba Inu may capture the public’s imagination, savvy investors should look beyond the headlines. Polkadot’s technical prowess and its central role in the growing Web3 ecosystem should make it a transformative investment. As the digital world moves closer to Web3 reality, in the encrypted phase, Polkadot’s innovative infrastructure and powerful interoperability capabilities should lead to substantial growth.
Anders Bylund has positions in Bitcoin, Ethereum, and Polkadot. The Motley Fool has and recommends positions on Bitcoin and Ethereum. Motley Fool has a disclosure policy.