As cryptocurrencies are now trending, in 2022 there is a heated debate between the proponents of Shiba Inu and Dogecoin, two of the most widely used. Due to the fact that both are based on internet meme dogs, their popularity exploded. The dispute over Dogecoin vs. Shiba Inu persists because the two meme currencies are so similar and appeal to the same kind of investors.
Although many in the crypto community look down on meme currencies, Dogecoin’s blockchain isn’t wholly useless. Considering that DOGE is based on the Litecoin concept, its infrastructure is robust. Moreover, as it employs the scrypt proof-of-work (PoW) algorithm, it is more scalable than other prominent cryptos.
Shiba Inu utilizes SHIB, an ERC-20 token, indicating that it is powered by Ethereum. In the Dogecoin vs Shiba Inu argument, the topic is which meme currency is superior. In this post, we will compare and contrast Dogecoin and Shiba Inu, highlighting their similarities and contrasts.
Dogecoin
Dogecoin was introduced in 2013 with the Shiba Inu as its mascot and DOGE as its token. From that point on, traders realize that, with the appropriate timing, Dogecoin trading may provide substantial profits. DOGE ultimately became one of the most popular cryptocurrencies in 2021, reaching a market valuation of $32 billion.
Dogecoin utilizes the same underlying technology as Bitcoin. On their respective networks, both Dogecoin and Bitcoin utilize a consensus process based on proof-of-work to validate transactions. However, Dogecoin may be preferable to Bitcoin for daily purchases because of its cheaper transaction fees and quicker processing times.
Proof-of-work cryptocurrencies like Dogecoin and Bitcoin both rely on computational power to protect their own blockchains. Due to the fact that DOGE is mined using Litecoin, miners of either currency have the option of also mining the other. That way, the strength of your network may be more stable.
The dog-themed cryptocurrency Dogecoin is not an identical replica of Bitcoin; nevertheless, it has a far greater circulating supply than Bitcoin and no set maximum supply. Compared to the 21 million maximum supply of Bitcoin, there are approximately 129 billion DOGE in circulation. Additionally, 10,000 Dogecoin are minted each minute.
Shiba Inu
Shiba Inu, a token on the Ethereum network, is the most preferred candidate to follow in the footsteps of Dogecoin. SHIB token advocates refer to it as the “DOGE killer.”
Shiba was first released in August 2020, and its price never climbed a few fractions of a cent. In 2021, however, SHIB’s price started to match DOGE’s price movements. In April of that year, the price of SHIB increased from $0.0000001 to $0.0000036. Since then, the moniker “DOGE killer” has gained popularity.
The use case of SHIB is identical to that of Doge; it is a token for trade and nothing more. Fungible tokens, such as Shiba Inu, are ERC-20 tokens, while non-fungible tokens, or NFTs, employ the ERC-721 token standard. Because the Shiba Inu is powered by Ethereum, it can use smart contracts to construct decentralized finance (DeFi) products.
The Shiba Inu has also joined the NFT market with Shiboshis, a collection of 10,000 Shiba Inu-themed NFTs. The decentralized application leverages the Ethereum network to enable the auctioning of NFTs, replacing smart contracts with a third party.
ShibaSwap provides many safe and profitable deposit options for your Shiba Inu tokens. However, this will result in the token’s inflation, which might push the price down.
Shiba Inu vs Dogecoin
Total value of all coins in circulation right now is what is known as a coin’s market capitalization. As the quantity of coins increases, the market capitalization will also increase, everything else being equal.
There are currently around 132.7 billion Dogecoins in circulation, with a market price of over $0.13 per coin. Thus, Dogecoin has a market value of around $17 billion.
Shiba Inu has significantly more coins in circulation than Dogecoin despite having a smaller market capitalization. There are around 549 trillion Shiba Inu coins in circulation, and their value was last recorded at roughly $0.00002067. The coin now has a total estimated value of $11 billion.
- Advantage of investing in SHIB
In the United States, Shiba Inu is one of the most-searched cryptocurrencies, and the number of people who own SHIB coins has just risen to 1.1 million. As more cryptocurrency exchanges include SHIB, its popularity and trading volume will rise.
The introduction of the decentralized exchange ShibaSwap was a stimulus for progress. In addition to enhancing liquidity, the option to stake coins on ShibaSwap has encouraged investors to hold their currencies for longer periods of time.
On the other hand, Shiba Inu uses the Ethereum network. As a result, its transaction volume and block formation timeframes will be an accurate reflection of Ethereum’s activity. Moreover, since SHIB is an ERC-20 token, it can connect with emerging Ethereum sectors like as DeFi.
Even while SHIB has been riding DOGE’s coattails in this Dogecoin vs. Shiba Inu competition, this does not necessarily exclude SHIB from surpassing DOGE in the future. When Ethereum complete switching to proof-of-stake (PoS), it might offer Shiba Inu an edge over Dogecoin.
- Disadvantage of investing in SHIB
The absence of competitive advantages and distinctiveness is one of the main issues with Shiba Inu. Shiba Inu is currently nothing more than an Ethereum blockchain-based ERC-20 token. Due to its popularity, the Ethereum network is susceptible to congestion, processing latency, and high transaction fees. In other terms, the Shiba Inu is an inefficient payment currency.
Keeping in mind that almost all cryptocurrencies have limited usefulness – Shiba Inu’s real-world use case is especially limited considering its $18 billion market valuation. Cryptwerk reports that just around 600 businesses throughout the globe accept SHIB as payment, and that 44 of these “merchants” are cryptocurrency exchanges. Shiba Inu is only recognized by a small subset of niche web businesses.
- Advantage of investing in Dogecoin
Dogecoin’s proof-of-work (PoW) consensus process is similar to that of Litecoin and facilitates fast transactions. Dogecoin employs the scrypt algorithm as opposed to the SHA256 method used by Bitcoin. Given that Scrypt allows for a higher rate of block production, Dogecoin ought to be more scalable than Bitcoin.
Dogecoin surpassed both Bitcoin and Ethereum in terms of search volume in the United States last year. One of the three digital currencies owned by the world’s wealthiest individual is Dogecoin. Elon Musk tweeted that he will be collaborating with Dogecoin’s creators to enhance the blockchain-based network, in addition to being an ardent backer of the project.
For what it’s worth, project developers are already hard at work on network upgrades designed to reduce transaction fees and increase DOGE’s competitive in the cryptocurrency industry. Currently, transactions on the Dogecoin blockchain are less expensive than those on the Bitcoin and Ethereum blockchain networks.
- Disadvantage of investing in Dogecoin
Like Shiba Inu, Dogecoin’s lack of competitive benefits and uniqueness is its main weakness. Even though its network is less expensive than that of Bitcoin and Ethereum, it is much more expensive than almost all other popular payment currency and cannot expand nearly as rapidly. In conclusion, there is no compelling rationale for companies to accept DOGE as a form of payment.
While Dogecoin has been around for a little over eight years, just 1,982 businesses are now accepting this cryptocurrency as payment, according to data compiled by Cryptwerk. With approximately 10% of its total value going to cryptocurrency exchanges, Dogecoin has few practical use.
For investors considering Dogecoin, the coin’s history is littered with huge price fluctuations, many of which were caused by the passionate DOGE community. Traders who are able to time these swings properly stand to reap enormous profits.
Conclusion
Trading cryptocurrencies requires knowledge of the underlying asset, since not all cryptocurrencies are created equal. Some characteristics may make one currency more successful than another, and a once-popular cryptocurrency may become old news in the near future.
Trader mood is the primary short-term driver of cryptocurrency price movements, thus it’s crucial to be aware that a cryptocurrency’s price might suddenly shoot up or plummet due to sudden shifts in investor opinion.
There are a range of differing perspectives on meme coins, the most of which are unfavorable. One thing they have shown, however, is the strength of community. In addition, critics overlook the enjoyment element. Apart from the NFT industry, there isn’t much lighthearted entertainment in the crypto world. Therefore, memes have resonated with crypto enthusiasts.
In conclusion, Dogecoin has the benefit of a larger community and a well-known connection to Elon Musk. However, the cryptocurrency attempting to replace DOGE has greater technical possibilities and is gaining support in its community. Moreover, the team is developing ShibaSwap to allow users to swap SHIB for other cryptocurrencies.
Both Dogecoin and Shiba Inu have benefits, therefore only time will tell which currency will prevail in this competition. Remember that the information presented here is not financial advice; conduct your own research before investing in any asset, meme coin or otherwise. For more information you can contact us.
