You know how important it is Ethereum (ETH 3.41% ) is when some refer to other cryptocurrencies as the “[fill in the blank] Ethereum.” This is exactly what is happening with Waves ( WAVES 7.10% ). Some cryptocurrency enthusiasts have dubbed it the “Russian Ethereum”.
Whatever nickname you want to give to Waves, there is no doubt that it is very hot. Last year’s big winner shiba inus ( SHIB 2.84% ), has fallen nearly 30% in the past month. But Waves has soared more than 140% over the same period. Why is the so-called “Russian Ethereum” crushing Shiba Inu right now?
A nickname that has stuck
Let’s first see why Waves is called “the Russian Ethereum”. The Russian connection comes in part from Waves founder Alexander (Sasha) Ivanov. He was born in Ukraine but graduated from Moscow State University in Russia.
The company behind Waves also has ties to Russia. Although registered in Switzerland and operating an office there, the company is headquartered in Moscow. Ivanov said in a 2019 interview, “We can’t completely separate ourselves from our Russian roots, although they might hamper the business a bit. I think we should become the main advocate for blockchain technology in Russia.”
What about the link to Ethereum? Unlike many popular cryptocurrencies, Waves was not originally built on the Ethereum blockchain. However, the Waves roadmap includes support for the Ethereum Virtual Machine (EVM).
Probably the main reason Waves is compared to Ethereum is the functionality of its underlying blockchain. Like Ethereum, Waves supports smart contracts and decentralized applications.
Behind the wave of Waves
There are at least three main reasons for Waves’ recent big gains. First, the Russian invasion of Ukraine put Waves in the spotlight for many investors. Ivanov’s ties to both countries partly explain the heightened interest. Speculation that Russians would turn to cryptocurrencies following the ruble’s fall was another factor.
Second, leading cryptocurrency exchange Binance announced on March 2 that it had added several cryptocurrencies as collateral assets on its lending platform. Waves was one of the new supported digital tokens.
Third, Waves announced its aforementioned roadmap. EVM support is just one of the features under development. Waves also plans to launch a new Decentralized Autonomous Organization (DAO) governance model this year. It builds bridges to all EVM-enabled channels and between digital metaverse worlds.
Another part of this roadmap that probably got investors excited was Waves’ founding of an American company, Waves Labs. This new company is headquartered in Miami. The Waves team said the US “is a key market to drive mass adoption in 2022” and added that a $150 million fund and incubation program for the US market will be announced. this spring.
Ebb and flow
As all of this activity continued for Waves, Shiba Inu was weighed down by investor concerns about the heightened level of risk in the crypto market. There has been some good news for Shiba Inu over the past month. For example, a reveal that ShibaSwap 2.0 will support token burning was seen as a big potential catalyst. However, even this positive development was not enough to completely overcome the headwinds in the overall crypto market.
Will Waves continue to outshine Shiba Inu this year? Maybe, but there are certainly no guarantees. In addition to ShibaSwap 2.0, Shiba Inu also has other possible catalysts on the way, including the planned launch of the Shibarium layer-2 blockchain.
Shiba Inu may rebound over the next few months as Waves declines. Or not. Every cryptocurrency has ebb and flow periods.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.