what’s the difference and which is better?

Both Dogecoin and Shiba Inu have emerged as major players in the meme coin world. Their carefree brand has proven popular in the market and catapulted them to success.

While they may appear similar on the surface, these two coins have important differences that set them apart and provide different use cases and investment factors to consider.

Overview of Dogecoin and Shiba Inu

Launched in 2013, Dogecoin was the first meme coin, a digital asset that was clearly launched as a joke. The currency was created by software engineers Billy Marcus and Jackson Palmer in part as a way to poke fun at Bitcoin and its growing popularity. What the developers must not have known, of course, was that their currency would be worth tens of billions of dollars.

What started as a meme featuring the Shiba Inu dog breed quickly turned into a hugely popular cryptocurrency, backed by a dedicated community as well as notoriety from the press and public figures like Elon Musk.

DOGE has managed to establish a real-world use case and has become a popular way for cryptocurrency users to make tips and conduct small transactions that can be cost-prohibitive with currencies like Bitcoin, especially due to higher fees 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, Shiba Inu aimed to capitalize on the meme coin trend while offering more benefits than Dogecoin. Because it is published on Ethereum, Shiba Inu can integrate with decentralized finance and offers access to DeFi services not supported by Dogecoin.

Let’s examine these differences in more detail 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 can process fast and low-cost transactions, ideal for tipping and microtransactions, but is limited in terms of interoperability with other blockchains or crypto services.

(SHIB) Shiba Inu, on the other hand, is not as powerful in terms of fast transactions at low cost, but it arguably offers more benefits.

As an ERC-20 token, SHIB can interact with essentially all Ethereum-based applications and smart contracts in the world. But this also means that Ethereum is sometimes subject to high gas fees and slow transaction times due to network congestion.

Finally, there is a big difference in sourcing strategies.

Dogecoin has an inflationary supply model where 5 billion new DOGE coins (DOGE) are released each year. Many crypto users were fed up with the popular “Doge to $1” campaign that became popular among new entrants to the space in 2021; because the price point would require DOGE to reach a market cap of approximately $130 billion.

Meanwhile, Shiba Inu initially has a fixed supply of a whopping 1 quadrillion tokens. Supply is often cited as a reason why individual SHIB coins are described as ‘cheap’ or affordable. But this still reflects the fact that the understanding of tokenomics is incomplete; Because investors need to consider the market value rather than the price of a single coin when measuring value.

Approximately half of SHIB’s supply has been burned or removed from circulation, but the remaining supply still impacts value potential.

Of course, to make a true Shiba Inu vs Dogecoin comparison, we must take into account the price history of these two coins.

Dogecoin and Shiba Inu: market performance and volatility

Both cryptocurrencies have experienced dramatic price fluctuations, often due to the influence of social media and public figures. Let’s weigh in on Shiba Inu vs. Dogecoin.

Dogecoin saw its price peak at $0.7376 in 2021, thanks to the support of people like Elon Musk.

Dogecoin all-time price chart | Source: TradingView

Shiba Inu peaked at $0.00008845 later that year, to the excitement of its growing community.

SHIB all time price chart | Source: TradingView

In terms of market cap, Dogecoin consistently ranks higher and currently stands at $15.6 billion compared to Shiba Inu’s $9.6 billion. The coins currently rank 8th and 13th respectively in the overall market cap rankings.

This reflects Dogecoin’s broader adoption as a simple and accessible cryptocurrency, while Shiba Inu’s complex DeFi potential offers more speculative value. However, SHIB is catching up with a 118% price increase in the last 12 months compared to DOGE’s 69% growth last year.

Shiba Inu vs Dogecoin price prediction

Let’s take a look at the potential price prediction between Doge and Shiba.

Shiba Inu price prediction

Shiba Inu’s future largely depends 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 greater adoption and increase the value of SHIB. However, the large supply of tokens may continue to drive the price down.

It is interesting to note that, as mentioned earlier, Shiba Inu has had a strong year, but it remains well off the yearly high seen in May, with plenty of resistance to break before approaching this price range.

Dogecoin price prediction

Price predictions for Dogecoin are often influenced by media hype, especially high-profile endorsements. In the absence of significant technological advances or new real-world use cases, its price may fluctuate based on speculative trading.

For a meme coin that was never intended to be taken seriously, it certainly shocked the world with its strong community and price action. However, it is difficult to accurately predict any price movement for this currency due to the peculiar nature of historical up and down price momentum and inflationary supply tokenomics.

Unlike Shiba Inu, Dogecoin is not particularly linked to success in the DeFi sector, and its success or failure is really 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 in transaction speed and functionality of the transaction, but ultimately 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 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 among the many options currently available on the market, most of which have more features and integrations than Dogecoin. With no real benefit beyond the potential for speculative gains in the modern crypto space, this is a particularly high-risk investment, even for a cryptocurrency.

Meanwhile, Shiba Inu provides 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 dependence on Ethereum’s infrastructure.

Once again, Shiba Inu is far from being the most feature-packed or well-established DeFi currency on the market and has no edge or advantage over other ERC-20 tokens and is considered to be at a disadvantage in the eyes of many investors. .

At the end of the day, what these coins offer is a dedicated community coming together to have fun and share memes, rather than a serious investment opportunity. But that doesn’t mean experienced traders can’t learn technical analysis to try trading the charts for these meme coins.