Anyone who’s been in the crypto space for a while will be familiar with Shiba Inu and Dogecoin. However, what makes them so popular may not be so obvious. Also, the differences between them may not be so apparent to some. This is because the nature of a meme coin suggests that it might not have sound monetary principles. Accordingly, many crypto enthusiasts are wondering which is the better cryptocurrency out of Shiba Inu vs Dogecoin?
In this “Shiba Inu vs Dogecoin” article, we’re going to explore the two most prominent meme coins and what makes them so incredibly popular. We’ll discuss how a simple internet joke can transform into a decentralized financial community. Plus, we’ll look at the differences and similarities between the two most popular dogs in crypto. In addition, we’ll explore the real-world use cases for these assets and the charitable causes they have been a part of.
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Shiba Inu vs Dogecoin: What is a Meme Coin?
Before we consider the differences between Shiba Inu vs Dogecoin, let’s look at the broader category of meme coins. A meme coin is a cryptocurrency that references an online joke, meme, or popular culture reference. The crypto community is well-known for enjoying internet jokes and memes.
The "Doge" meme is among the most famous in the crypto space, combining a Shiba Inu dog with playful language and vibrant themes. While Dogecoin was arguably the catalyst for this category of cryptocurrencies, several similar dog-themed tokens have emerged in recent years to capture some of the meme coin hype.
What is Dogecoin?
Dogecoin (DOGE) is a peer-to-peer, decentralized cryptocurrency with an architecture similar to that of Litecoin. Launched in 2013 as a joke by product manager Jackson Palmer and ex IBM software developer Billy Markus, Dogecoin has a picture of the Shiba Inu dog as its mascot. Furthermore, Dogecoin is an altcoin with very different characteristics to Bitcoin. For example, Bitcoin has a maximum supply of 21 million, whereas Dogecoin has no maximum supply.
The Dogecoin code was based on that of Luckycoin, another Litecoin derivative. Initially, the project used a randomized block mining reward before switching to a static reward in March 2014. Also, Bitcoin uses the SHA-256 hashing algorithm, while Dogecoin uses the Scrypt algorithm (the same as Litecoin). However, Dogecoin uses a similar proof-of-work (PoW) consensus mechanism as Bitcoin.
Moreover, the Dogecoin community is one of the most diverse and varied in the industry. Following the launch of Dogecoin in 2013, the price of the asset jumped by 300%. This would not last, as many other altcoins would also take a nosedive following a shift in sentiment throughout the markets. However, Dogecoin would go on to cement itself in the crypto hall of fame as a fun and casual alternative to Bitcoin.
Dogecoin has seen some of the craziest price action of any top ten cryptocurrencies. After trading below a cent for over seven years, Dogecoin hit an all-time high of $0.73 in May 2021. At the time of writing, Dogecoin is trading at around $0.11, with a market capitalization of $15.4 billion.
Charity
Dogecoin donations have assisted multiple charitable causes globally, including a well-building project in Kenya and a fundraiser to help the Jamaican bobsled team reach the Olympics when they could not afford the journey. Also, several Dogecoin tipping bots have been developed that enable social media users to tip their favorite content creators using DOGE.
What is Shiba Inu?
Launched in August 2020 by the anonymous individual or group, Ryoshi, Shiba Inu (SHIB) is a cryptocurrency named after the Japanese hunting dog. The Ethereum-based altcoin was reportedly developed as an alternative to Dogecoin, dubbed “the Dogecoin killer” by many early investors. Similar to Dogecoin, Shiba Inu was released as a joke rather than a project providing legitimate utility as a financial asset. However, just like the "DogeArmy", the "ShibArmy" community is a diverse array of enthusiasts from all demographics.
Furthermore, Shiba Inu holders enjoyed a 100x increase in the price of the asset in October 2021 as the market capitalization of the asset peaked at $41 billion. At the time of writing, Shiba Inu is trading at around $0.000022 with a market capitalization of around $12.3 billion. Moreover, Shiba Inu is the second-best performing meme coin after Dogecoin.
SHIB Supply
Shiba Inu (SHIB) began with a maximum supply of one quadrillion. Half of this was locked up in Uniswap's decentralized exchange (DEX) as liquidity, with the other half being “burned” and given to Ethereum co-founder Vitalik Buterin for “safekeeping”. However, during the fallout of the COVID-19 pandemic, Buterin’s allocation became part of the most significant crypto donation on record as part of an attempt to curb the devastation of the pandemic in India. After this, 40% of the allocation was sent to an unusable wallet to reduce the supply of SHIB and enhance the sustainability of the asset.
The Shiba Inu Ecosystem
There are three tokens within the broader Shiba Inu ecosystem. First, the primary ERC-20 SHIB token is the foundational currency. Second, the LEASH token was initially created to be a "rebase" token. However, the rebase feature was not a part of the final version.
Whereas SHIB has a total supply of one quadrillion, LEASH has a total supply of only 107,646 tokens. At the time of writing, the LEASH token is trading at around $1,096. In addition, the BONE token serves as a governance token for the Shiba Inu ecosystem. Holders can vote in the “Doggy DAO” to make changes to the parameters of the ecosystem.
ShibaSwap is a DEX that facilitates peer-to-peer token swaps and enables SHIB holders to lock up their funds to earn crypto rewards in various ways. For example, holders can “dig” (provide liquidity) and “bury” (stake) to earn token rewards using a novel reward structure. In addition, users can access ShibArmy NFTs and portfolio trackers via the ShibaSwap portal. Shiba Inu is also working in partnership with AmazonSmile to enable shoppers to donate a portion of Amazon purchases to the Shiba Inu Rescue Association.
Top Companies Accepting Dogecoin and Shiba Inu
Despite their differences, both of these crypto assets have gained mainstream utility. Accordingly, DOGE and SHIB can both be used to pay for goods and services from several prominent retailers and merchants. Holders of these meme coins can book movies online with U.S. movie theater company AMC Theatres. Plus, Tesla and SpaceX accept DOGE and SHIB for merchandise purchases. In addition, GameStop customers can use DOGE and SHIB for purchasing computer games.
Furthermore, DOGE and SHIB are accepted globally for a range of goods and services, including luxury department store Nordstrom, the Barnes and Noble Education platform, the Petco pet store chain, Ultra Beauty cosmetics, and Lowe’s (the home improvement center). DOGE and SHIB are both seeing increasingly widespread adoption for online payments. In the future, we can expect to see more top companies accepting these crypto assets.
Shiba Inu vs Dogecoin: Which is Better?
Both Shiba Inu and Dogecoin have created a splash by gaining mainstream adoption and notoriety on social media. Both assets have essentially created something incredible out of nothing. Also, both assets have been pivotal for charitable causes to help those suffering during a global pandemic.
The main difference between Dogecoin and Shiba Inu is that Shiba Inu is essentially an evolution of the number one meme coin. Moreover, DOGE adopts common technological practices from first-generation PoW blockchains popular at the time of its inception. SHIB boasts a more extensive ecosystem of DeFi services that reflect the popular trends of its time.
Accordingly, it could be said that SHIB has more utility than DOGE for earning a passive income. Conversely, DOGE mining can be a profitable endeavor for anyone already mining Litecoin and other PoW cryptocurrencies, something which isn’t possible with SHIB.
Moreover, because DOGE was the original meme coin, it is responsible for shaping part of the crypto landscape. However, SHIB took this model and achieved similar heights to DOGE in a much smaller time frame, cementing the meme coin narrative for 2021 and beyond.
One thing these assets have in common is that they have fallen in value significantly from their respective all-time highs. At the time of writing, Dogecoin is down 83% from its high in May 2021, while Shiba Inu is down 73% from October of the same year.
Shiba Inu vs Dogecoin: Risks
Despite the incredible price action that meme coins experience, the volatility of these assets can be dangerous. Unlike many other crypto assets, meme coins have little to no intrinsic utility. Although many vendors and merchants may accept DOGE and SHIB because of their popularity, they do not have the same sound money principles as Bitcoin and many other cryptocurrencies.
Furthermore, meme coins often pump because of collective social media trends. Getting on the right side of this can, of course, be profitable. However, if you’re left holding the bag, the price of these assets could drop very quickly by a long margin. Naturally, this can happen with any crypto asset. That said, the risk is greater if the asset has little utility or underlying value that would encourage long-term investors to help create price stability. Moreover, meme coins are highly speculative assets, often with small developer communities.
The fact that Dogecoin and Shiba Inu have seen such tremendous price action could mean that anybody looking to get in on the action could have missed the party. Conversely, the social media-fueled hype that drives the success of these coins could continue to reward risk-takers and speculators. Regardless, history suggests that monumental gains like the ones seen with these assets usually precede equally colossal losses. If you invest in any cryptocurrency, remember to conduct your own research and never invest what you can’t afford to lose.
Shiba Inu vs Dogecoin: Which One is Better? - Summary
While Dogecoin operates on an independent blockchain network, Shiba Inu is an Ethereum ERC-20 token with decentralized finance (DeFi) compatibility. However, there are many differences between the two top dogs in the crypto space. Both are responsible for life-changing returns for investors thanks to a diehard following and a new wave of social media investing.
Meme coins such as Shiba Inu and Dogecoin have seen tremendous success in recent months after accelerating to the top ten cryptocurrencies by market capitalization. Both assets have seen more utility than many would imagine being possible. Plus, they have both provided funding for multiple charitable causes. However, the fundamental principles of these meme coins remain dubious.
Undoubtedly, any asset that can help people in need if necessary. Indeed, any currency can be useful as a medium of exchange or unit of account. However, the design of these currencies or assets does not incorporate the sound money principles of Bitcoin and other major cryptocurrencies. As such, always exercise caution when investing in volatile assets such as meme coins.
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