Dogecoin and Shiba Inu have been popular cryptocurrencies among investors, with a combined market cap of $18 billion, even surpassing Cardano (ADA). However, choosing between DOGE and SHIB can be a difficult decision for those who prioritize short-term volatility over long-term viability.
Dogecoin, which is still considered the king of meme coins, was launched in December 2013 by Jackson Palmer and Billy Markus as a parody of Bitcoin on Reddit. With a modified version of Litecoin (LTC), Dogecoin uses Proof-of-Work to verify transactions and generate new coins. Miners are rewarded with 10,000 DOGE per block, and the total supply is unlimited with approximately 5 billion new coins created each year through mining.
Transactions on the Dogecoin network are confirmed quickly due to a block time of only one minute, and DOGE can be traded on cryptocurrency exchanges and used to purchase goods and services online. Additionally, Elon Musk has played a significant role in revitalizing Dogecoin with his tweets, propelling it to position eight among cryptocurrencies by the end of 2022.
However, the more Elon Musk tweeted about DOGE, the more market resistance he built up. Due to its high inflation rate, DOGE’s value is constantly being eroded, making it a risky investment with volatility and inflation risks. Despite not being a stable investment option, DOGE has still outperformed Bitcoin in 2021 due to its memetic volatility.
On the other hand, Shiba Inu (SHIB), launched in August 2020 by the pseudonymous “Ryoshi,” is the second-largest meme coin with a market cap of $5 billion. Unlike Dogecoin, SHIB is an altcoin that is tied entirely to Ethereum as an ERC-20 token. Initially, SHIB’s tokenomics had a total supply of 1 quadrillion tokens, 50% of which were sent to Vitalik Buterin’s wallet, causing controversy. Buterin later burned 40% of the total supply, leaving SHIB with a 44,410% larger total coin supply than DOGE.
Ryoshi locked the rest of SHIB’s supply to the Uniswap decentralized exchange. Unlike DOGE, SHIB coins are limited as ERC-20 tokens and native to the Ethereum DeFi ecosystem, enabling staking in liquidity pools and play-to-earn blockchain gaming. DOGE, on the other hand, relies on external pushers like Elon Musk for utility integration and is also volatile, influenced by social media.
While both DOGE and SHIB have high volatility rates and pose investment risks, investors may prefer DOGE for its strong community and market presence, while others may prefer SHIB for its ties to Ethereum and DeFi ecosystem. Both cryptocurrencies are driven primarily by social media attention and speculation rather than fundamental economic factors, making them highly unpredictable investments.
In conclusion, choosing between DOGE and SHIB can be a challenging decision for those who prioritize short-term volatility over long-term viability. Dogecoin and Shiba Inu are both meme coins with a high market cap and favorable investor attention. However, investors must consider the risks and volatility associated with these cryptocurrencies before making an investment decision. While Dogecoin has a larger market presence, Shiba Inu’s tie to Ethereum and DeFi ecosystem offers unique advantages for staking and blockchain gaming. Ultimately, investors should choose the cryptocurrency that aligns best with their investment goals and risk tolerance.