It's hard to believe, but Dogecoin(CRYPTO: DOGE) has been around more than a decade now. In that time, it has become the most popular meme coin for investors, boasting a market cap of more than $15 billion. That makes Dogecoin one of the top 10 most valuable cryptocurrencies in the world.
But all good things must come to an end, and it's unlikely that Dogecoin will remain a top 10 crypto for much longer. Here are three cryptocurrencies with serious staying power that will eventually be worth more than Dogecoin.
Avalanche
First up is Avalanche(CRYPTO: AVAX), which has a market cap of almost $11 billion. It's right on the cusp of breaking into the top 10, and that's primarily because Avalanche is a potential "Ethereum killer." Avalanche is one of the few Layer-1 blockchain networks with any chance of toppling Ethereum, due to its superior speed and transaction-processing capabilities.
Given that Ethereum has a market cap of $325 billion, it's easy to see why even winning a tiny sliver of market share away from Ethereum could be worth billions in market valuation. Another "Ethereum killer," Solana, has already passed Dogecoin in terms of market cap, and it's only a matter of time before Avalanche does the same.
Unlike Dogecoin, which is first and foremost a digital currency that you use to pay for things online, Avalanche is both a currency and a blockchain ecosystem. As a blockchain ecosystem, Avalanche is at the forefront of everything that happens in the blockchain world, from gaming to decentralized finance (DeFi). That creates a tremendous amount of value -- and certainly more value than Dogecoin, which has a valuation based purely on sentiment and speculation.
Chainlink
Another cryptocurrency lurking on the very edges of the top 10 is Chainlink(CRYPTO: LINK), with a market cap of more than $7 billion. Chainlink burst onto the scene during the previous crypto bull market rally, when it skyrocketed in price and became one of the most popular cryptocurrencies for DeFi.
That's because Chainlink is an oracle coin for everything DeFi-related. This means that Chainlink is the link between real-world data and what happens on the blockchain. This real-world data is needed for smart contracts, which are the building blocks of DeFi. And, right now, Chainlink is the largest oracle coin in the world.
The one exciting trend that has the potential to propel Chainlink past Dogecoin is real-world asset tokenization (often abbreviated as just RWA), which refers to the conversion of traditional financial assets into digital assets. This might sound like an obscure financial trend, but some of the biggest names on Wall Street -- including BlackRock, the creator of the most popular spot Bitcoin exchange-traded fund (ETF) -- are firmly behind this trend.
According to Boston Consulting Group, asset tokenization is a $16 trillion market opportunity just waiting to happen. That might be overstating matters, but if Chainlink can become a key player in asset tokenization by helping Wall Street institutions price digital assets across a variety of blockchains, then its valuation could skyrocket in just a few years.
Shiba Inu
Finally, there's Shiba Inu(CRYPTO: SHIB), which is the main meme coin rival to Dogecoin. In fact, both cryptos share the same avatar: the lovable Shiba Inu dog. Shiba Inu now has market cap of more than $8 billion, roughly half that of Dogecoin.
There's one huge advantage that Shiba Inu has over Dogecoin: a commitment to becoming a utility-based blockchain ecosystem. In such a way, Shiba Inu hopes to become more than just a meme coin. And that could lead to a higher valuation.
Image source: Getty Images.
In August 2023, Shiba Inu launched a Layer-2 scaling solution called Shibarium. This was supposed to lead to all sorts of new speed and efficiency gains, thereby enabling Shiba Inu to launch new blockchain games and Web3 experiences. Although it's unclear how successful these efforts will be, at least Shiba Inu is trying new things to become top dog.
Crypto's four-year cycles
All of these cryptocurrencies have a high likelihood of surpassing Dogecoin in market cap within the next four years. Why four years? Well, the time between Bitcoin halving events is four years, and these halving events historically have led to new four-year cycles in the crypto market. The last Bitcoin halving took place back in April. So, during the next four years, we'll likely see cryptocurrencies rise and fall in popularity with investors.
My prediction is that, four years from now, Avalanche, Chainlink, and Shiba Inu will all be worth more than Dogecoin. At that time, Dogecoin will be almost 15 years old. That's a long time in dog years, and an eternity in crypto years.
Should you invest $1,000 in Dogecoin right now?
Before you buy stock in Dogecoin, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Dogecoin wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $792,725!*
Stock Advisor provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month. TheStock Advisorservice has more than quadrupled the return of S&P 500 since 2002*.
*Stock Advisor returns as of August 26, 2024
Dominic Basulto has positions in Bitcoin, Ethereum, and Solana. The Motley Fool has positions in and recommends Avalanche, Bitcoin, Chainlink, Ethereum, and Solana. The Motley Fool has a disclosure policy.
