2 Cryptocurrencies That Have Trounced Bitcoin and Shiba Inu During the Crypto Crash

Bitcoin (CRYPTO: BTC), the largest cryptocurrency on the market, has been gnawing at the dust so far in the new year. As well as the best performing digital token in 2021, Shiba Inu (CRYPTO: gray hair).

Not their fault. Cryptocurrency prices have generally fallen in recent days. But not all of them. Here are the two cryptocurrencies that beat Bitcoin and Shiba Inu during the current cryptocurrency meltdown.

Image source: Getty Images.

1. Chainlink

While Bitcoin and Shiba Inu have both fallen this year so far, chain link (CRYPTO: link) It has made impressive year-to-date gains of close to 40%. It now ranks number 16 on CoinMarketCap’s list of the best cryptocurrencies with a market capitalization of around $12.9 billion.

How has Chainlink managed to defy gravity as most other cryptocurrencies sank? Some crypto whales deserve a lot of credit. Crypto Whales are investors who invest heavily in cryptocurrencies. Where they put their abundant financial resources is the subject of intense scrutiny.

Whale Stats specifically tracks the top 1,000 crypto wallets worldwide Ethereum (CRYPTO: ETH) blockchain. Last week, the site reported that crypto whales have been swimming towards Chainlink more than any other cryptocurrency. That was all it took to deliver a significant boost to Chainlink’s price.

Why did Chainlink acquire a service? Probably because it pioneered the so-called Oracle Networks. Smart contracts are built on the blockchain. However, they often require data from outside the blockchain ecosystem. Oracles enable smart contracts to access this real-world external data.

For example, Arbol has developed a smart contracting platform for farmers and other companies to hedge against climate risks. This requires weather data from outside the blockchain. Arbol chose Chainlink to make this happen.

Chainlink could enjoy wider adoption from now on thanks to a planned Ethereum 2.0 upgrade. Since Chainlink is built on the Ethereum blockchain, the move from Ethereum to the Proof of Stake protocol may entice more developers to use the Chainlink oracle network.

2. Internet computer

Internet computer (CRYPTO: ICP) Another award winner has emerged in 2022 so far. The value of the cryptocurrency has increased more than 30% year-to-date. It is currently ranked 27th in the CoinMarketCap ranking with a market capitalization of around $6.6 billion.

There is no evidence that crypto whales pump their money into the internet computer because they have Chainlink. However, investors seem to be increasingly enamored with the opportunity of Web3 (or Web 3.0) for the PC Internet. The Internet Computer was one of the 10 largest growing cryptocurrency ecosystems last year, according to venture firm Web3 Electric Capital.

If you are not familiar with Web3, you can consider it the third version of the Internet where individuals control rather than large corporations. Web 1.0 was the first internet in the 1990s. Web 2.0 came later with companies like Amazon.comFacebook (now ID pads), Google (now part of the alphabet), And Twitter dominate. The idea with Web3 is that you will be able to control your own data thanks to the power of blockchains.

Internet Computer is designed to enable the Internet to host all kinds of smart contracts and Decentralized Finance (DeFi) applications. Unlike traditional blockchains, any device connected to the Internet, including smartphones and smartwatches, can authenticate artifacts using an Internet computer.

Several projects in the online computer ecosystems are making the promise of Web3 a reality. For example, Fleek allows any web content to be published on Web3. Distrikt is a kind of Web3 version of MicrosoftLinkedIn.

If Web3 takes off as much as some expect, Internet Computer can continue its successful ways. And it may continue to beat Bitcoin and Shiba Inu.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.