Avalanche struggles to sustain growth as newer Layer 1 and Ethereum Layer 2 solutions gain traction.
Cardano’s slow dApp rollout and low on-chain activity raise concerns about future adoption and scalability.
Solana’s repeated outages and developer exits challenge its position as a high-speed DeFi platform.
Crypto portfolios to see if their investments are sustainable. Driven by changes in technology, laws and what investors think, some digital assets might now be misaligned with a company’s growth strategies. This paper explores five digital currencies Avalanche (AVAX), Cardano (ADA), Shiba Inu (SHIB), Solana (SOL) and Dogecoin (DOGE) that could fit well into a portfolio rebalance.
Avalanche (AVAX) network competes in a crowded market.
Source : CoinMarketcap
Avalanche (AVAX) is a well-known platform that has three types of blockchains called X-Chain, C-Chain, and P-Chain, each built for a particular function. Having multiple chains increases the system’s capacity to 6,500 transactions per second, without compromising decentralization. The use of various consensus methods on its chains stands apart from what Bitcoin and Ethereum did with their older models.
Avalanche was built on technology, it now has to deal with new Layer 1 networks and changing Layer 2 options on Ethereum. It added numerous Ethereum-based DeFi projects, but the ecosystem has yet to record lasting growth in areas like real-world asset tokenization and zero-knowledge technology. If investors track developments and activity on-chain, it could be seen that AVAX is not driving the most new developments in the market by 2025.
Cardano (ADA): Movements Are Blocked By Project Development Issues
Source : CoinMarketcap
Cardano (ADA) is appreciated for having a clear structure that follows peer-reviewed research. The PoS mechanism is used in blockchain to reach consensus and it has strived to become both safe and environmentally friendly. The network offered more features by upgrading with Shelley to make the project less centralized and Alonzo to enable smart contract use.
Yet, some people have criticized the project because its main activities are taking too much time to be delivered. Ethereum and certain similar projects have improved smart contracts and easy scaling, but Cardano has had difficulty making its dApp ecosystem appealing. Not many transactions are happening on the network, and higher frequency upgrades on newer platforms have encouraged developers to look elsewhere.
Shiba Inu (SHIB) Experiences Limitations with U.S. Payment Service
Source : CoinMarketcap
SHIB began in 2020 as a meme cryptocurrency and soon attracted a wide fan base. As celebrities talked about the project and it became very popular online, more stores offered it and it was listed on major exchange platforms. Because SHIB operates on Ethereum, it is now being used for payments at hundreds of businesses, directly or indirectly.
SHIB’s utility remains constrained compared to more advanced DeFi or infrastructure tokens. The project has introduced products such as ShibaSwap and a metaverse component, but broader developer participation remains limited. With market focus shifting to real-world use cases, artificial intelligence integrations, and ecosystem composability, SHIB’s meme-driven identity may limit future performance.
Solana (SOL) Balances Performance With Stability Concerns
Source : CoinMarketcap
Solana was launched to enable many transactions and useful decentralized applications. Merging proof-of-history (PoH) and proof-of-stake (PoS) was designed to tackle both the wait times and expense problems faced in decentralized finance. Developers and institutions have shown interest in the protocol since its launch, mainly because it executes fast and efficiently.
Nevertheless, the network has experienced multiple outages and reliability concerns, which have impacted its perception in enterprise and DeFi markets. While upgrades are being implemented to improve network resilience, the repeated downtime issues have contributed to developer migration to other chains. As competition increases and alternative Layer 1s offer comparable throughput with stronger uptime, investors may reconsider exposure to SOL based on operational consistency.
