Shiba Inu vs Solana: What's Different in the Crypto Rebound Market?

▲ Shiba Inu is about 'retail investor interest', Solana is about 'real-world use'... The diverging fates of two coins in a rebound market/AI-generated image

As the cryptocurrency market rebounds after a month, Shiba Inu (SHIB) and Solana (SOL) have re-entered investors' radar, but the investment rationales for the two assets differ significantly. Shiba Inu is considered a memecoin sensitive to retail investor interest and market momentum, while Solana is regarded as a blockchain network with fast processing speeds and real-world use cases like stablecoin payments.

According to investment media outlet The Motley Fool on September 29 (local time), the cryptocurrency market, which experienced significant corrections this year, has recently recovered some of its losses. Bitcoin (BTC) rose by approximately 5% over the past month. While the market shows signs of revival and investor interest is returning to cryptocurrencies, the media explains that it is still uncertain whether the recent rebound will lead to a sustained upward trend.

Shiba Inu, one of the early memecoins, tends to follow the overall market direction but exhibits much greater volatility. Amidst the cryptocurrency bear market this year, its market capitalization ranking fell to 31st as of September 28, while Dogecoin (DOGE) ranked 11th. Shiba Inu, in particular, heavily relies on the interest of individual investors, so it could face relatively greater pressure if funds shift to other investment themes such as AI or quantum computing.

However, the Shiba Inu ecosystem is also attempting technological expansion. While SHIB is an ERC-20 token issued on the Ethereum (ETH) network, the development team has built a Layer-2 blockchain solution that processes transactions outside the Ethereum mainnet. This structure aims to increase transaction speed while reducing the circulating supply by burning tokens. The Motley Fool explained that although Shiba Inu performed poorly in the cryptocurrency bear market, it has the potential to rebound strongly in a bull market where retail investor interest returns, leveraging its high volatility.

Solana differs from Shiba Inu in its technological foundation. The Solana network uses Proof-of-Stake and Proof-of-History consensus mechanisms. Proof-of-History, in particular, assigns a timestamp to each transaction, processing transaction order without relying on external systems, thereby reducing blockchain bottlenecks. Solana currently processes approximately 4,000 to 6,000 transactions per second (TPS) and once reached 100,000 TPS in network stress tests. Based on this processing speed, it is considered one of the leading networks suitable for payments, especially stablecoin transactions.

The Motley Fool pointed out that predicting short-term prices for cryptocurrencies is difficult because they cannot be evaluated using traditional metrics like corporate profits or free cash flow. It explained that memecoins like Shiba Inu tend to fall more sharply during market downturns and surge during upturns, making it difficult to determine direction based solely on the recent rebound. In contrast, the media gave a more positive assessment to Solana from a long-term perspective, citing its network's technological competitiveness and real-world use cases such as stablecoin payments.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*