For cryptocurrencies created under less than serious circumstances, SHIB and DOGE have done very well for themselves.
Dogecoin was launched as a joke in December 2013 by software engineers Billy Markus and Jackson Palmer, who wanted to take a jab at the wild speculation about cryptocurrencies.
On the other hand, Shiba Inu was created in 2020 by an anonymous person or group called “Ryoshi” as a direct competitor to Dogecoin. Shiba Inu was donated in large amounts (about $1 billion worth) to Ethereum creator Vitalik Buterin, who then donated it to India’s covid-19 relief fund.
Over the years, these two memecoins have been referred to as “pump and dump” schemes due to their ridiculously high supplies and their history of flash pumps and steep corrections.
Dogecoin rallied almost 1100% in 2021 alone after several tweets from Elon Musk. Soon after, Dogecoin lost almost 90% of its total value in the crypto crash of May 2021.
Similarly, Shiba Inu has also undergone several pumps. It even overtook Dogecoin and outperformed it in 2021. Shiba Inu pumped by 42% in a single day in mid-August this year.
The Dogecoin versus Shiba Inu question has no clear answer because the crypto market is highly speculative, and anything can happen. However, a few factors, like development activity and other fundamental analysis, can help us predict how far these two cryptocurrencies can go.
Dogecoin v/s Shiba Inu: Tokenomics
The next bitcoin halving is less than a year now, meaning a major bull run may be on its way here.
Messari, an analytics platform, has identified seven trends that may help us predict when this next market bull run is expected. These trends may include Ethereum roll-ups, web3 gaming trends, new layer 1 decentralized applications, etc.
When this happens, a good percentage of the crypto community would like to know beforehand which way the scales are likely to tip.
Despite being created almost a decade after Dogecoin and experiencing some of the worst dips on the market, Shiba Inu has retained its ranking as the 14th largest cryptocurrency with a $6.1 billion market cap.
Dogecoin, however, is ahead of Shiba Inu for now. It has a market cap of about $7 billion and is ranked 10th on the list of the top cryptocurrencies by market cap.
Dogecoin v/s Shiba Inu: Coin Comparison
Shiba Inu and Dogecoin are ERC-20 tokens. This means they were created with the same token standard as proof of work, Ethereum, before the merge.
These coins have ridiculously high supplies that have negatively affected their prices.
However, the Shiba Inu community actively burns SHIB tokens. For perspective, more than 410 Trillion SHIB has been burned to date. Dogecoin fails woefully in this regard and does not capitalize on scarcity.
In terms of community, the Dogecoin community has the upper hand. Dogecoin enjoys a more active community and better celebrity endorsements compared to Shiba Inu.
DOGE v/s SHIB: The Whales
According to WhaleStats, many Ethereum whales also hold Shiba Inu and have even been observed to hold on to the cryptocurrency for longer than others.
However, about nine wallets own more than 1% of Shiba Inu’s outstanding supply from the list of the biggest Ethereum whales.
Whales holding a cryptocurrency can both be a good and bad thing.
As long as the whales do not sell their holdings, the price of the said asset has a healthy chance of experiencing price increases. However, as soon as the whales sell their holdings simultaneously, the resulting dips are catastrophic.
In the long run, the question of which crypto wins in the next bull run is still heavily under speculation and may happen either way.
Disclaimer: The author’s comments and recommendations are solely for educational and informative purposes. They do not represent any financial or investment advice. Always DYOR (do your own research)