Forget Shiba Inu: Electric Capital Says Polkadot Is Hot in 2024

Meme coins like Shiba Inu (SHIB), Bonk Inu (BONK), and Pepe Coin (PEPE) provide investors with alternative avenues for potentially high returns compared to traditional assets like Bitcoin. These coins offer the possibility of significant profits within short time frames, attracting investors seeking rapid gains. However, they also come with high levels of risk due to their extreme volatility and susceptibility to market manipulation. Despite the risks, meme coins have introduced younger investors to the broader financial landscape, including Bitcoin and the stock market, fostering increased participation and financial literacy among this demographic.

SHIB Gained 26% in Feb (BTC Gained 45%)

Shiba Inu has undergone a remarkable evolution, transitioning from a mere L2 meme coin to a comprehensive Web 3.0 ecosystem. At the heart of this transformation lies Shibarium, a platform that empowers SHIB holders with a plethora of functionalities, including swapping, yielding, lending, borrowing, governance, leveraging, limiting, and even building with their beloved dog-themed ERC20 tokens.

Despite Shiba Inu’s price lagging behind Bitcoin (BTC) in February, the concerted efforts of developers and the community have fueled a significant surge in daily active transactions. Notably, the network has effectively “burned” approximately 41% of the SHIB supply within a remarkably short timeframe, with the burn feature introduced as recently as April 2023.

In recent days, SHIB has witnessed a rapid uptick in value, aligning with the broader momentum of the meme coin market and notably outperforming Bitcoin (BTC) throughout March thus far.

However, amidst the fervor surrounding Shiba Inu, Electric Capital is advocating for Polkadot’s DOT as a cryptocurrency worth monitoring closely in the upcoming market cycle.

Growth in Developers

Electric Capital, a prominent venture capital firm based in Palo Alto specializing in early-stage investments in cryptocurrency companies, conducted an extensive analysis for its latest blockchain developer report, which involved an extensive review of numerous projects associated with Polkadot (DOT).

While Shiba Inu does have a dedicated developer team, the level of development activity is still relatively nascent, resulting in its exclusion from the report focused on blockchain developer activity. In stark contrast, the Polkadot ecosystem has witnessed a substantial surge in development efforts, with the number of full-time developers dedicated to the DOT ecosystem more than tripling over the span of three years. As a result, Polkadot now boasts the third-largest contingent of full-time developers, trailing only behind Ethereum and Bitcoin in this regard.

Despite the robust growth in developer engagement and application activity within the Polkadot ecosystem, the platform’s market performance may not necessarily reflect these advancements, with Bitcoin (BTC) and Ethereum (ETH) dominating the spotlight in the cryptocurrency market throughout 2024.

Despite this, Polkadot (DOT) tokens have experienced notable gains, with average crypto exchange prices increasing by 25% in February alone, and achieving a total increase of 32% over the past month, as reported by CoinGecko.

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