For a while now, the conversation about Shiba Inu versus Dogecoin has dominated the meme coin landscape. Both meme coins have evolved from internet jokes into influential projects with large followings, earning a spot on the top 15 cryptocurrencies list. Dogecoin is seen as the OG meme coin, born in 2013 and boasting a larger market cap, and while it didn’t solve any grand problems when it emerged, it gained its goodwill through charity work such as funding non-profits, sparking curiosity for many others who wanted to learn how to buy dogecoin and join this community of kindhearted individuals. On the other hand, Shiba Inu emerged in 2020 as the “DOGE killer”, carving out its own niche in the meme coin market, which is now positioning itself as more than a meme coin and aiming to build an entirely different DeFi ecosystem besides payments.
While both have the same Shiba Inu dog as mascot, one is around three times larger than the other in market value, and there are significant differences between the two in terms of tokenomics, technology and more.
Breaking down the tokenomics of Dogecoin and Shiba Inu
Tokenomics refers to the economic and design principles behind a cryptocurrency, defining how it works and sustains its value, and includes aspects such as total and circulating supply, mechanisms for maintaining value and controlling inflation, distribution, and token utilities and rewards. Dogecoin follows an inflationary model, and its blockchain aims to maintain steady transaction liquidity. It utilizes a PoW consensus and the Scrypt algorithm(like Litecoin), and it’s also speedy, making it the express lane of cryptocurrency transactions. Since Dogecoin is created for active use, it doesn’t encourage hoarding, but rather, it focuses on high monetary velocity for payments, tipping, and retail adoption, which fits its role as a transactional currency, or, to quote Elon Musk, “people’s currency”.
Shiba Inu, on the other hand, may be marketed as a cute meme coin, but it has defined tokenomics. It started with a total supply of one quadrillion tokens, but what’s interesting is that 50.5% of the supply was sent to Vitalik Buterin, who donated it during Covid. Currently, the circulating supply of Shiba Inu is about 589 trillion tokens, but the goal is to reduce it further to create a deflationary model.
Price history and market cap of Dogecoin and Shiba Inu
Throughout the past five years, Dogecoin and Shiba Inu’s price action has been incredible, to say the least. Dogecoin hit its peak in May 2021, driven by Elon Musk’s tweets and community hype, while Shiba Inu also reached its all-time high in October 2021, driven by its growing popularity and ecosystem.
Both meme coins have been very volatile but have also delivered substantial returns for early investors. As of today, Dogecoin has a market cap of about $23.98 billion, while Shiba Inu’s market cap is about $5.11 billion.
Technological differences between Dogecoin and Shiba Inu
Dogecoin and Shiba Inu seem to be rival dogs in the same kennel, but their technology separates them like cats and dogs. Dogecoin stands tall as a layer-1 blockchain, while Shiba Inu is an ERC-20 token that runs on the Ethereum network, leveraging its security and smart contract capabilities. However, Ethereum’s congestion leads to high gas fees, which is why Shiba Inu introduced Shibarium, a layer-2 blockchain designed to address this issue and improve scalability.
Notably, Dogecoin is in the process of switching from its Proof-of-Work roots that require miners to compete to Proof-of-Stake, which is more eco-friendly and will help ensure Dogecoin remains relevant in a world that’s increasingly reluctant to engage with carbon-heavy cryptos.
Community and development of SHIB and DOGE
There’s a reason why Doge Army and ShibArmy have such a great reputation: they offer active support to the projects. Both Shiba Inu and Dogecoin have millions of holders, but it’s worth noting that their development approaches take unique angles. Dogecoin has a more straightforward mission, and its environment is meant for fun activities with trends and memes going viral. The solution of Shiba Inu, on the other hand, seems to be engaging internally with the creators building NFTs and Shibarium to stay active.
For both Dogecoin and Shiba Inu, celebrity backing has been essential, propelling them into the crypto spotlight. Elon Musk is known as the Dogefather because he posted extensively about the coin on social media, which helped it gain traction very quickly. Celebrities like Mark Cuban and Snoop Dogg also contributed to DOGE’s popularity. Similarly, crypto community influencers, including developer Shytoshi Kusama and Vitalik Buterin, have put Shiba Inu in the limelight, and while this meme coin may not have a single high-profile advocate like Elon Musk on X, many influential names are talking about it and helping keep the token in the news.
Which is a better buy between the two meme coins?
We cannot give a straightforward answer to this question because it depends on your goals when investing in meme coins. If you’re aiming for steady growth and mass adoption, going with Dogecoin is a good idea. However, if you’re more interested in potential innovation and ecosystem exploration, Shiba Inu might be the better pick. Or, you could instead hedge your bets and get both of them. It’s ultimately a matter of priorities. However, you should remember that both Dogecoin and Shiba Inu can be extremely risky investments, so if you’re planning to buy any of them, it’s important to do your due diligence first and have a plan that allows you to mitigate the risks and protect your financial health. Remember that crypto isn’t a get-rich-quick scheme, and it should support you in your journey towards financial independence, not become a source of financial stress or impulsive decision-making. Whichever meme coin you decide to buy, proceed with caution.
The bottom line
Dogecoin and Shiba Inu are a testament to the power of meme coins to transcend their origins as internet jokes and become major players in the crypto world. But they have achieved this goal in a different way, which showcases their unique strategies, market perceptions, and community involvement, among other things.
While Dogecoin’s journey emphasizes stability and ongoing user engagement, Shiba Inu has expanded its reach by building a detailed decentralized finance ecosystem and offering a functional asset within the crypto market rather than just a cultural token. Ultimately, none of them is necessarily better than the other, and when it comes to which one you should buy, it’s important to assess your goals and make an informed decision.
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