Dogecoin vs. Shiba Inu: Crypto’s Dogfight
Usually, meme tokens are not known for having much value 💲 when it comes to utility 🔧, but as general sentiment has changed over time surrounding meme tokens, these two projects have experienced large growth 📈 and success. But who comes out on top in this crypto dogfight? Let's first look at each project separately:
Dogecoin entered the cryptocurrency space in 2013 as a joke 😹 that was based on a Shiba Inu meme (the dog breed 🐕, not the other crypto) that was trawling the web at the time. It was formed by Billy Marcus and Jackson Palmer and created to mock crypto noobs; investors who didn't understand what they were investing in. As successful memes do, it rapidly grew a big following but it didn't have much use or utility behind it to prove its value within the crypto space.
Dogecoin really blew up 💥 in popularity in 2020 thanks to Twitter 🐤 and of course, Elon Musk. With his tweets and play-on-words, this saw DOGE pump to record highs of 12,000% 😮 by mid-2021 and being labelled as “the Dogefather”.
Since then, DOGE’s adoption continues to grow, regardless of the current state of the markets and many large corporations even accept Dogecoin as a form of payment! Once the markets return to a bullish 📈 market, Dogecoin will have a good chance to perform well once again.
Shiba Inu (SHIB) launched 🚀 into the market in August 2020 as the Ethereum-based rival to the original pooch themed 🐕 meme token DOGE, and in just 15 months it was one of the best performing cryptocurrencies recorded to date - increasing in value by 🤯 46 million percent! Taking into account today’s market conditions, SHIB is down 🔻 by about 89% since its October 2021 highs.
Shiba Inu differentiated itself from DOGE by providing actual use cases 🛠️ such as a decentralised exchange, a recently launched Metaverse, and a layer-2 solution to scale and cut down transaction fees. Thus dubbed ‘The Doge Killer’ 🔪🐕.
Just like Dogecoin, SHIB is trading at big lows 📉 right now during this current bear market. However, despite this, the Shiba Inu ecosystem is growing at a fast pace as well as adopting for SHIB payments 💸 which leads to its potential to really rebound well, once the bear market is over!
What’s the connection between the two meme coins?
To proceed to differentiate between the two canines 🐕🐩, we will outline the similarities and differences between them below. But to summarise, there is no actual link 🔗 between the two coins. They are both built on different networks and they are both essentially competitors in the space, each of them providing its own use case.
Other than the obvious being they are both dog and meme-based, there are three main similarities that connect these coins that are seen less frequently in the crypto space.
- PoW Consensus Model: Both of these coins use a Proof-of-Work consensus 🌐 algorithm (similar that of Bitcoin), that requires miners to solve computational 💻 problems the fastest in order to validate transactions. Dogecoin was originally hard-forked off of the Litecoin Network and Shiba Inu was built on top of Ethereum’s blockchain. (It's worth mentioning here that in the coming months, this will change when Ethereum moves to a Proof-of-Stake mechanism).
- Social Media Moguls: Both of these projects from their inception, have had very active and loyal followers and have also built themselves strong communities 💪 . They also both played a role in bringing crypto to the commercial mainstream 📸, in a fun-witted and light-hearted way having their active community members to thank.
- Elon Musk: Of course Elon 🚗 is in this list as both of these meme tokens have greatly benefited from the actions of Musk himself! Now of course, he is known as being a proponent of DOGE, he did also recently send the price of SHIB skywards 📈 after he posted a picture of his very own Shiba Inu puppy dog; which in part, contributed to SHIB’s price reaching all-time highs!
Apart from these two being animal-based competitors and sitting alongside the biggest cryptos based on market cap, they do have their differences!
- Blockchains: While Dogecoin was built after being hard-forked from Litecoin with its own blockchain, Shiba Inu was built as an ERC-20 token, on top of the Ethereum blockchain. This increases its versatility as it is comparable with all ERC-20 functions, such as access to diversified wallets 👛, smart contracts 📋, decentralised exchanges, and more.
- Tokenomics: A very important aspect to be aware of is that these two meme coins are actually very different in their 🧬 ‘DNA’. Dogecoin has no maximum supply of coins with over 5 billion new DOGE entering circulation every year. Now while this makes Dogecoin inflationary as there are new coins coming into existence all the time, it doesn't mean its price is destined to decrease! In actual fact, there's no denying its price potential when considering its history. Shiba Inu however has been capped at a fixed supply of 1 quadrillion coins and has an in-built burning 🔥 mechanism that burns small amounts of SHIB every time the crypto is purchased via the transaction fee. As more coins are bought, the burn mechanism will lower its overall supply making SHIB deflationary, which on paper, gives it an edge over DOGE.
- Utility: The two projects have different utilities 🔧. Dogecoin is essentially a P2P payment system providing a medium of exchange. Adversely, Shiba Inu has more flexibility and utility as it can be used within smart contracts and DeFi products. SHIBA also provides a decentralised exchange called Shibaswap, as well as two other tokens called LEASH 🦮 (liquidity token) and BONE 🦴 (its governance token). On top of that, the platform also offers users access to liquidity pools and staking services that earn investors passive incomes.
The Dogfight Continues…
As we have mentioned above, both of these cryptocurrencies have great communities 🧍🧍♀️🧍♂️ behind them and each has their own use cases. They are also both, amongst the best meme coins to bet on long term also.
Many investors and traders are wondering where experts predict 🔮 Shiba Inu will go next or how high ⬆️ can Dogecoin actually go, but the fact is that no one can say for certain. Each investor must decide for themselves which of the two is better suited to their trading and investment needs and enter the market accordingly. However, in terms of performance, utility, and gains; odds are in favour of SHIB to be the winner of the two - due to its deflationary tokenomics favouring long-term value growth.
If you’d like to onboard DOGE or SHIBA, you can do so securely and conveniently through NAGAX today!
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