Over the past three months, Bitcoin has nearly tripled (197%), which shows a 187-percentage-point outperformance of the benchmark S&P 500. But this 197% gain pales in comparison to the returns a handful of other cryptocurrencies delivered over the past three months. In this article we introduce three cryptocurrencies which crushed Bitcoin over the past 3 months with significant gains: Dogecoin, Cardano and Stellar.
Over the past three months, cryptocurrency Dogecoin (CRYPTO: DOGE) has run circles around Bitcoin (BTC), with a return of 2,330%. As of this past weekend, it had become the 12th-largest digital token by market capitalization ($7.5 billion).
What’s interesting is that Dogecoin was created in 2013 as a joke in a matter of hours by engineers Billy Markus and Jackson Palmer. Palmer thought to combine two of the most buzzworthy things on the internet at the time: cryptocurrency and the Doge meme featuring a Shiba Inu dog. This joke has now become a full-fledged fear-of-missing-out (FOMO) opportunity for investors.
Unfortunately, there doesn’t seem to be anything unique about Dogecoin, other than its cult-like following. These gains probably won’t last long, and FOMO investors will be crushed.
Unlike Dogecoin, it seems to be tangible reasons behind the 766% increase in cryptocurrency Cardano (CRYPTO: ADA) over the past three months. In particular, three projects or events stand out.
Probably the most important catalyst of the bunch was the launch of Shelley in late July (the engineering team has interesting poetic names for each of its upgrades; the last one was dubbed Byron). Shelley is designed to rise the number of nodes that network participants run. More nodes mean more decentralization and improved security on the Cardano network. Prior to this July launch, Cardano averaged 1,500 to 2,500 daily transactions. It’s now averaging above 25,000.
Secondly, investors look excited about the ongoing reinvestment in its blockchain project. In particular, engineers are hard at work on Goguen, which will enable users to create smart contracts — i.e., self-executing contracts that take effect when preset conditions are met. Goguen is expected to appeal to a broader audience of users, like ones who may not have an understanding of programming.
Third, Cardano looks to be getting a lift from digital trust management company Grayscale, which recently added a Cardano Trust. While this doesn’t mean that Grayscale will offer an investment tool as it has with the Grayscale Bitcoin Trust, Cardano investors think positive about that possibility.
Stellar (CRYPTO: XLM) has also crushed Bitcoin over the trailing three months. Its 588% return is triple that of the biggest cryptocurrency in the world. As with Cardano, there are evidently tangible reasons behind this move (not just tweets from Elon Musk).
The most exciting aspect of Stellar is its excellent payment network speed. Whereas traditional banking networks take anywhere from a few days to a week to approve and settle a cross-border payment, Stellar can do so in only some seconds. The only requirement is that the Lumens (XLM) coin must be supported on that network. In other words, Stellar speeds up supply chains by making payments more efficient.
Stellar is also receiving a boost from an early January announcement that it’s working closely with the Ukrainian government to create a central bank digital currency. This doesn’t guarantee that the Stellar Development Foundation will finally be responsible for developing a national central bank digital currency. But it does mean that Stellar is going to play an importantrole in that decision-making process, according to Ministry of Digital Transformation official Oleksandr Bornyakov as reported in Cointelegraph.
After all, althogh these cryptocurrencies outperformed Bitcoin, the chances of these recent gains holding are probably slim. Though momentum has been strong, and nothing says FOMO quite like cryptocurrencies, the fact is that the different forms of blockchain technology have yet to catch on with big businesses.
There’s no question that blockchain offers promise and could eventually transform the payments and supply chain landscape. But it’s been years, and we haven’t seen much real-world momentum for blockchain technology. In fact, Coindesk reported earlier this month that IBM (NYSE: IBM) had practically shelved its blockchain projects, according to some sources. This is noteworthy, as IBM was one of Stellar’s earliest big-name collaborative partners.