Coin Vs. Coin: DOGE/SHIB
The two most popular memecoins are Dogecoin (DOGE) and Shiba Inu (SHIB). Both have become very popular with retail investors and have a lot of potential use cases as cryptocurrency grows in popularity and practicality in the marketplace. Each of these memecoins has an enormous market cap and has stayed within the top 20 cryptocurrencies by market cap.
Shiba Inu and Dogecoin both have significant market capitalizations, strong brands and enthusiastic communities. SHIB fanatics are known as the ‘SHIBArmy’ and SHIB was introduced to the market as “the Dogecoin killer”.
What is Dogecoin?
Dogecoin is the world’s first and most popular memecoin. Launched in 2013 as a parody of bitcoin, it has since become one of the largest cryptocurrencies by market capitalization. DOGE is primarily used as a payment system, allowing users to quickly and easily send money around the world.
Dogecoin has a wide variety of uses, from tipping content creators to sponsoring sporting events and charities. It also enables users to earn interest on their cryptocurrency holdings by staking their coins. This means that users can lock up their coins for a certain period of time to receive rewards for supporting the network.
DOGE has been invested in by some of the wealthiest investors in the world, such as Elon Musk. As a meme, DOGE has a lot of cultural significance and is easily recognizable with its logo. Its high token supply put its price very low ($0.08 at press time), making it seem ‘cheap’ to many new investors.
What is Shiba Inu?
Shiba Inu was created in August 2020 as part of the Dogecoin ecosystem and quickly rose to become the second-largest memecoin by market cap. Shiba Inu has become an extremely popular memecoin as it is used by a large number of traders, investors, and speculators.
Unlike many other cryptocurrencies that have limited use cases, Shiba Inu is used for trading and speculation across multiple crypto exchanges. It has also been adopted as a form of payment with Twitch, AMC Theaters and the American Cancer Society.
SHIB has a unit bias due to its high total supply which creates appeal to investors. However, its market cap is very large as of 2022 meaning that it has limited upside potential.
Key Differences
SHIB is a token while DOGE is a coin.
DOGE is a fork off of the Litecoin network and SHIB is built within the Dogecoin ecosystem.
SHIB has a max supply of 1 quadrillion tokens whereas DOGE does not have a max supply.
DOGE is the largest proof-of-work protocol which miners can earn profits from; SHIB, on the other hand, is not mined and is only purchased through exchanges.
SHIB is an ERC-20 token which means it can only be stored on Ethereum-based wallets; DOGE can be stored on a variety of hot and cold wallets.
Final analysis
Dogecoin and Shiba Inu are both very popular with not only altcoin investors but also cryptocurrency whale investors as well. It’s too early to say if they each have the potential to reach the valuations that many investors hope they will; both are incredibly volatile assets, even for the crypto community.
What is for certain is that memecoins are here to stay and whether DOGE and SHIB stick around for the long term or not.