Dogecoin and Shiba Inu have emerged as major players in the world of meme coins. Their fun brand has proven popular in the market, propelling them to success.
Although they may appear similar on the surface, these two currencies have important differences that set them apart and provide distinct use cases and investment factors to consider.
Dogecoin and Shiba Inu Overview
Launched in 2013, Dogecoin was the first so-called meme coin, a digital asset launched explicitly as a joke. The currency was created by software engineers Billy Marcus and Jackson Ballmer partly as a way to mock Bitcoin and its growing popularity. What the developers didn’t know, of course, was that their own currency would be worth tens of billions of dollars.
What started as a meme featuring the Shiba Inu dog breed quickly evolved into a hugely popular cryptocurrency backed by a dedicated community as well as press and notoriety from public figures like Elon Musk.
DOGE has been able to identify a real-world use case and has become a popular way for cryptocurrency users to issue tips and execute small transactions that would otherwise be expensive with currencies like Bitcoin due to the high fees involved, especially in past years.
In 2020, the Shiba Inu cryptocurrency emerged as a potential “Dogecoin killer.” Built on the Ethereum blockchain as an ERC-20 token, the Shiba Inu was intended to capitalize on the meme coin trend while offering greater utility than Dogecoin. Because it is issued on Ethereum, the Shiba Inu can integrate with DeFi and provides access to DeFi services that Dogecoin does not support.
Let’s explore these differences further in the section below.
What is the difference between Dogecoin and Shiba Inu?
One of the biggest differences between Dogecoin and Shiba Inu is the technology behind them. Dogecoin runs on its own blockchain and uses a Proof of Work (PoW) system, similar to Bitcoin. The Dogecoin blockchain is capable of fast, low-cost transactions, ideal for tipping and microtransactions, but is limited in terms of interoperability with other blockchains or crypto services.
(SHIB) On the other hand, the Shiba Inu is not as strong in terms of quick transactions at low cost but arguably provides greater benefit.
As an ERC-20 token, SHIB can interact with essentially any Ethereum-based applications and smart contracts in the world. However, this also means that the Shiba Inu is subject to Ethereum’s sometimes high gas fees and slow transaction times, depending on network congestion.
Finally, the main difference lies in their sourcing strategies.
Dogecoin has an inflationary supply model, with 5 billion new DOGE coins (DOGE) being introduced every year. Many cryptocurrency users found themselves angered by the popular “Doge to $1” campaign that became popular in 2021 among newbie entrants to the space, as the price point required DOGE to reach a market cap of around $130 billion.
Meanwhile, the Shiba Inu has a fixed supply, with a massive initial count of 1 quadrillion tokens. Supply is often cited as a reason why individual SHIB coins are described as “cheap” or affordable. However, again, this belies a lack of understanding of token economics, as what investors should consider is the market value rather than the price of a single coin when measuring value.
Nearly half of SHIB’s supply has been burned or removed from circulation, but the remaining supply still weighs on its potential value.
Of course, to make a real comparison between Shiba Inu and Dogecoin, we must take into account the price history of these two coins.
Dogecoin vs Shiba Inu: Market performance and volatility
Both currencies have seen significant price fluctuations, often driven by social media and public figures. Let’s weigh the comparison of Shiba Inu and Dogecoin.
Dogecoin, thanks to the endorsement of individuals like Elon Musk, saw its price peak in 2021 at $0.7376.
The Shiba Inu peaked later that same year at $0.00008845, driven by the hype of its growing community.
In terms of market capitalization, Dogecoin consistently ranks higher and now stands at $15.6 billion compared to $9.6 billion for the Shiba Inu. The coins are currently ranked No. 8 and No. 13 in the overall market cap rankings respectively.
This reflects Dogecoin’s widespread adoption as a simple and accessible cryptocurrency, while the Shiba Inu’s complex DeFi capabilities provide greater speculative value. However, SHIB is catching up, with 118% price growth over the past 12 months compared to 69% growth last year for DOGE.
Shiba Inu and Dogecoin price prediction
Let’s take a look at the potential price predictions for Doge vs. Shiba.
Shiba Inu price forecast
The future of Shiba Inu depends largely on the success of projects like Shibarium, a layer 2 solution designed to reduce Ethereum’s high gas fees and increase scalability. If Shibarium is successful, it could lead to further adoption and increased value of SHIB. However, the huge token supply may continue to influence the price.
As mentioned earlier, it is interesting to note that the Shiba Inu has had a strong year, but it is a long way off the yearly high it saw in May, with several pockets of resistance that need to be broken before it gets close to this price range.
Dogecoin price forecast
For Dogecoin, price forecasts are often influenced by media hype, especially due to high-profile endorsements. Without major technological advances or new real-world use cases, its price may fluctuate based on speculative trading.
For a meme coin that was never meant to be taken seriously, it has certainly shocked the world with its strong community and price action. However, it is difficult to accurately predict any type of price movement for this coin due to the somewhat strange nature of past bullish and bearish price momentum and inflationary supply symbols.
Unlike the Shiba Inu, Dogecoin is not particularly associated with success in the DeFi sector, and its success or failure is truly anyone’s guess.
Which is better: Dogecoin or Shiba Inu?
So, Dogecoin vs. Shiba Inu: which is better?
When it comes to deciding which is better: Doge vs Shiba, the answer largely depends on your goals as an investor. The difference between Dogecoin and Shiba Inu is largely transaction speed versus transaction functionality, but in the end, both of these assets are meme coins.
Dogecoin offers a simple, fast, and low-cost cryptocurrency with an active community, making it a good choice for those looking for a daily benefit or a fun investment.
It is important to note that Dogecoin is by no means the only fast and low-cost cryptocurrency, nor is it the fastest or cheapest of the many options now available on the market, most of which have more features and integrations than Dogecoin. With no real benefit in the modern cryptocurrency space beyond the potential for speculative gains, this is a particularly high-risk investment, even for cryptocurrency.
Meanwhile, Shiba Inu offers more opportunities in the DeFi space due to its integration with Ethereum, offering higher potential rewards but also greater risk due to its volatility and reliance on the Ethereum infrastructure.
Once again, Shiba Inu is far from the most feature-packed or well-built decentralized finance (DeFi) coin on the market, it has no advantage or advantage compared to other ERC-20 tokens, and can be considered a disadvantage in the eyes of many investors. .
Ultimately, what these coins offer is simply a dedicated community coming together to have fun and share memes rather than a serious investment opportunity. However, this does not mean that experienced investors cannot learn technical analysis to try trading the charts of these coins.