Can You Compare Shiba Inu and Dogecoin?
‘Meme’ cryptos have risen to fame in recent months as a result of Elon Musk’s efforts. He has been an outspoken advocate of Dogecoin, which has resulted in a massive price increase.
Other currencies have also profited significantly, with Shiba Inu being among the most popular. It has been dubbed a ‘Doge killer,’ and has seen a large price increase and a great deal of volatility.
However, what is the distinction between these two cryptocurrencies and how can you choose one to invest in? Continue reading to get the critical things you need to know.
What Exactly Is Dogecoin?
As you might already know, Dogecoin began as a joke. Jackson Palmer & Billy Markus founded it in 2013. It is stylized after the internet joke ‘Doge’. While it began as just a joke, it has some use. It was created as a fork of Litecoin, a cryptocurrency comparable to Bitcoin. However, there’s one really critical distinction: supply. Since Dogecoin’s supply is uncapped, it is intrinsically inflationary. Due to the vast supply, Dogecoin has a cheap price, which has made it a viable option for tipping in recent years.
The Musk Factor
However, interest has increased significantly since Elon Musk became active in the coin’s promotion. He has been tweeting about it constantly, which has increased retail interest, and several celebrities/influencers have also gotten involved. This has fueled a ‘Doge fever,’ which may have culminated when Elon Musk addressed the cryptocurrency during a famous Saturday Night Live performance. The cryptocurrency has so far failed to regain the heights it reached before the show’s airing.
Listing On Coinbase
Recently, the cost has increased again in anticipation of an impending listing on Coinbase. Although it began as a joke, even institutional investors were finding it difficult to ignore Dogecoin’s course.
What Is The Shiba Inu Breed?
With the Dogecoin craze in full swing, other rivals have risen in an attempt to replicate the coin’s buzz and excitement. Shiba Inu has been dubbed the ‘Dogecoin killer,’ and this new cryptocurrency was launched early August 2020 by an unknown individual identified only as “Ryoshi.” Shiba Inu is an Ethereum-based ERC-20 token. It is named after a Japanese type of dog, similar to the one on the Dogecoin symbol.
The currency has been extremely popular among Chinese dealers, who have aided in driving the price upward. It is comparable to Dogecoin in terms of usefulness and its underlying value is that it can only be used as a transfer token.
Vitalik’s Factor
The owner handed half of the original quantity of Shiba Inu to Ether co-founder Vitalik Buterin, and Vitalik recently donated these 50 million coins to India’s covid crypto relief fund. Naturally, this resulted in a decrease in the coin’s value.
Shiba Inu Supply vs. Dogecoin
It is critical to examine the tokenomics of cryptocurrency investments at all times. Dogecoin’s supply system is quite unusual compared to other popular cryptocurrencies. As discussed earlier, Dogecoin has an unlimited supply. This means that, unlike Bitcoins, which has a limited number of 21 million coins, Dogecoin has no such limit.
In contrast, Shiba Inu’s supply is limited, but it is still rather big by crypto standards, at one quadrillion tokens. Thus, none of these crypto-assets is in any way rare. Vitalik had around 50% of these assets, and he chose to destroy 90% of them, which amounted to 410 trillion coins worth approximately $6.7 billion. This reduction in supply could kick-start another bull run for the currency.
Capitalization Of The Market
Market capitalization is another critical indicator to consider. Both Dogecoin & Shiba Inu currently have substantial market capitalizations, which may limit the possibility for further growth. This does, however, imply that both companies are well-established in the bitcoin market. Dogecoin is securely ranked among the top five cryptocurrency market capitalizations, with a price of $55,690,489,567. Shiba Inu, on the other hand, is among the top 30 with such a market capitalization of $3,930,545,083. This is rather remarkable given Shiba Inu’s youth.
Could SHIB Become the New DOGE?
What many want to know is if Shiba Inu has a genuine chance of one day surpassing Dogecoin. Market capitalizations are quite disparate at the moment.
However, the SHIB community is fervent, and another large price spike could be ruled out. Numerous investors have rushed to it in the hope of discovering the ‘next Doge.’ Dogecoin is already much higher than its current value, and even if it were to hit the $1 mark, it would not represent an enormous percentage rise over its existing value.
Summary
In general, both Dogecoin & Shiba Inu have a lot of promise, but also hold a lot of risk. These are merely speculative investments with little intrinsic value. They do, however, have a large number of ardent admirers who’ve been able to influence their pricing.
You ought to be aware of the substantial risk involved before investing your money. If you were on the fence, you now have a better understanding of these two cryptos.
While this article provides market analysis, this should not be construed as investment research or advice. The past is not a good predictor of future performance!
CFDs are sophisticated products that carry a significant risk of swiftly losing money owing to their leverage. When trading CFDs, 76.25% of regular investor accounts lose money.
