SHIBA INU Ranks 5th on List of Best Cryptocurrencies to Invest in According to Reddit

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We recently compiled an insightful list of the 12 Best Cryptocurrencies to Invest in According to Reddit, and today we are delving into the position of SHIBA INU (SHIB) within this competitive landscape.

The cryptocurrency market has experienced an extraordinary year. The approval of spot Bitcoin ETFs in the first quarter led to a significant period of adjustment, paving the way for the SEC’s approval of spot Ethereum ETFs by May. This regulatory milestone allowed spot Bitcoin ETFs to amass over $50 billion in combined assets within just six months, marking what many experts consider the most successful ETF category launch in history.

Beyond spot ETFs, crypto-themed ETFs also demonstrated strong performance in the first half of 2024. For instance, the First Trust SkyBridge Crypto Industry & Digital Economy ETF saw a remarkable year-to-date increase of over 20%. Similarly, blockchain-centric products gained substantial interest; the Amplify Transformational Data Sharing ETF rose by more than 19% year-to-date.

The Intersection of AI and Cryptocurrency

A notable development in recent months has been the integration of Artificial Intelligence into the cryptocurrency domain. AI tokens are cryptocurrencies directly linked to AI ventures, supporting various AI-based projects, applications, and services. These range from decentralized AI marketplaces to AI-driven decentralized autonomous organizations (DAOs).

Users utilize these tokens for service payments or data access on AI platforms. In turn, platforms use tokens as rewards to incentivize users and grant holders governance rights. According to CoinMarketCap, the market cap for AI and big data cryptocurrencies surged by over 70% within a few weeks, signaling renewed investor confidence.

Regulatory Landscape for Cryptocurrencies

High-profile collapses in the crypto industry, such as FTX, have thrust regulatory concerns into the spotlight. The downfall of major exchanges was largely due to inadequate regulation. However, government bodies are now vigorously enforcing rules. The U.S. Securities and Exchange Commission (SEC) has been particularly active in this regard.

CNBC reported that the U.S. is one of the most proactive regulators, having taken legal action against multiple crypto companies. Clear regulatory standards could open doors for institutional investors, such as banks and asset management firms, to invest in crypto assets.

A bi-annual survey by KPMG in Canada and the Canadian Association of Alternative Assets and Strategies (CAASA) revealed that 22% more financial services organizations offered crypto-asset products in 2023 compared to 2021. Additionally, 26% more institutional investors included crypto-related assets in their portfolios during the same period.

Coinbase highlighted a significant rise in institutional inflows into U.S. spot Bitcoin ETFs as demonstrated by updated Q2 2024 13-F filings. Institutional ownership of these ETFs increased from 21.4% to 24.0% between Q1 and Q2 of 2024, a promising indicator for the Bitcoin market.

Cryptocurrency Market Outlook

According to the United States International Trade Commission, tokenized asset exchanges generated approximately $26.5 billion in global revenues in 2022, with about 76% stemming from cryptocurrencies. Revenues soared in 2021 due to non-fungible tokens (NFTs) and rising cryptocurrency prices.

McKinsey forecasts that the total tokenized market capitalization will reach approximately $2 trillion by 2030, driven by mutual funds, bonds, exchange-traded notes (ETNs), loans, securitization, and alternative funds.

The global cryptocurrency market capitalization surpassed $2.5 trillion, with Bitcoin hitting an all-time high of over $73,000 and a market cap of $1.4 trillion by mid-March 2024. Forbes projects that the cryptocurrency market will reach around $6.6 billion in 2024, with user numbers climbing to 107.30 million by 2025.

This growth is expected to be fueled by increased acceptance and adoption by institutions and individuals, enhanced use of decentralized finance (DeFi) platforms, advancements in blockchain technology, and greater use for cross-border transactions.

Our Methodology

We meticulously analyzed various communities, subreddits, and threads to compile our list of the top 12 trending cryptocurrencies, ranked by market capitalization as of August 29.

At Insider Monkey, we are passionate about tracking stocks favored by hedge funds. Our research indicates that imitating top hedge fund picks can outperform the market. Our quarterly newsletter strategy selects 14 small-cap and large-cap stocks each quarter and has returned 275% since May 2014, outperforming its benchmark by 150 percentage points.

SHIBA INU (SHIB)

SHIBA INU (SHIB) is an Ethereum-based token designed as an alternative to Dogecoin (DOGE). Unlike Bitcoin’s scarcity model, SHIBA INU is intentionally abundant with a total supply of 1 quadrillion tokens. Its ecosystem includes an NFT art incubator and Shibaswap—a decentralized exchange where users can swap tokens, provide liquidity, and stake their holdings for rewards.

Since its launch in late 2020, SHIBA INU has become a global phenomenon accepted at various locations for payments either directly or through intermediaries. The ecosystem also includes other tokens like LEASH and BONE. Operating on the Ethereum blockchain, SHIBA INU leverages smart contracts for transactions and operations.

Unlike Dogecoin, SHIB is compatible with the Ethereum ecosystem, enabling the creation of decentralized applications like ShibaSwap. SHIBA INU has cultivated a large and dedicated following that actively contributes to its growth and widespread awareness.

Currently ranking 5th on our list of best cryptocurrencies to invest in, SHIB shows promise as an investment. However, we believe some undervalued AI stocks may offer higher returns in a shorter timeframe. For those interested in undervalued AI stocks trading at less than five times their earnings, check out our detailed report on this promising sector.

READ NEXT: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’

Disclosure: None. This article is originally published at Insider Monkey.

  • Priyanka

    Priyanka works in NYC as freelancer editor for one of the famous entertainment news blog.

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