You may be feeling frustrated if you look at the path of popular meme token Shiba Inu this year (only if you're not a Shiba Inu investor). It's soared a mind-boggling 47,900,000%. And it multiplied its market value by about six in just a few months -- to reach a high of more than $42 billion.
But here's the good news. There are plenty of other opportunities in the crypto space that could offer impressive gains in the months and even years to come. After all, thousands of cryptocurrencies have launched in the past few years -- and for many, the story is just getting started. But right here, I'll focus on one. And if you missed out on Shiba Inu, don't worry. This crypto offers much more opportunity in the long term.
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Soaring market value
I'm talking about Avalanche (AVAX 2.02%). The cryptocurrency's market value recently surged past that of Shiba Inu. Now, Avalanche is No. 12 by market cap, while Shiba Inu is taking the 13th spot.
Why all of the excitement about Avalanche? Many consider the blockchain platform an up-and-coming player that could rival crypto-giant Ethereum. Like Ethereum, Avalanche runs decentralized applications, or dApps. It still has a way to go when it comes to project volume as it's a newer platform. While Ethereum hosts nearly 3,000 projects, Avalanche hosts just under 400.
But Avalanche has what it takes to catch up with and possibly surpass larger rivals in the future. The design of Avalanche's blockchain equals efficiency.
Three blockchains operate on the Avalanche main network. The Platform Chain organizes the validators that confirm transactions, while the Contract Chain allows for the creation of smart contracts. And the Exchange Chain manages the transfer of assets.
All of this means higher speed and lower costs. Avalanche processes more than 4,500 transactions per second (TPS). And it finalizes each transaction in less than two seconds. That compares to TPS of 14 to 30 for Ethereum -- and that blockchain takes six minutes to finalize a transaction. Avalanche can handle thousands of transactions at the same time without running into the congestion that happens on networks with lower capacity.
Finally, another plus is Avalanche's interoperability. Developers can use it to quickly build dApps that are Ethereum compatible. And assets can be transferred across the blockchains.
The latest project
Another sign that Avalanche may be a future crypto winner is who's using it today. This month, Deloitte said it's using Avalanche to develop a platform for federal reimbursements following natural disasters and public health emergencies. The goal is to improve speed and security.
Will Avalanche skyrocket like Shiba Inu? I don't expect it to make such a dramatic gain in a short period of time. Avalanche isn't trading at a fraction of a cent, so it's nearly impossible to increase by a percentage in the millions. But that's OK.
Avalanche still may deliver very impressive gains in the year to come and beyond. At the same time, it offers more real-world utility than a player like Shiba Inu. And that's something most long-term investors will like.
