Dogecoin vs Shiba Inu: What’s the Difference?
Date: 2024-10-03 Author: Henry Casey Categories: CRYPTO PAYMENTS
Despite their similarities at first glance, they have significant differences that offer different use cases and investment prospects.
Dogecoin vs Shiba Inu Overview
Dogecoin was launched in 2013 as the first cryptocurrency to be created as a joke. It was created by programmers Billy Markus and Jackson Palmer to poke fun at the rise of Bitcoin. However, no one expected Dogecoin to become a cryptocurrency with a market cap in the tens of billions of dollars.
Shiba Inu, created in 2020, was marketed as a “Dogecoin killer” and became popular as an Ethereum-based token, offering features that Dogecoin does not.
Technological differences
The main difference between Dogecoin and Shiba Inu is the technology they use. Dogecoin runs on its own blockchain network with a Proof-of-Work (PoW) system, making it similar to Bitcoin. This allows Dogecoin to process fast and cheap transactions, which is especially useful for micro-payments, but limits its compatibility with other blockchains.
Shiba Inu, being an ERC-20 token based on Ethereum, can interact with decentralized financial services (DeFi), which opens up access to more features, albeit with the high fees of the Ethereum network.
Supply model
Dogecoin uses an inflationary model, in which 5 billion new coins are created every year. While Shiba Inu has a fixed supply of 1 quadrillion tokens, half of which have been “burned”, which also affects its price.
Market Performance and Volatility
Both coins have seen significant price fluctuations, often influenced by social media and public figures like Elon Musk. In 2021, Dogecoin peaked at $0.7376, while Shiba Inu peaked at $0.00008845.
Dogecoin has consistently been higher in market cap, currently sitting at $15.6 billion, while Shiba Inu is at $9.6 billion. However, SHIB has grown by 118% over the past 12 months, while DOGE has grown by 69%.
Price Forecast
Dogecoin prices are often influenced by public attention and media noise, such as Elon Musk mentions, and can fluctuate without a clear correlation to technological developments.
Shiba Inu, on the other hand, is betting on projects like Shibarium, which aim to reduce fees and increase the scalability of the Ethereum network. If these projects are successful, it could positively impact the price of SHIB, although its large supply could continue to hold back its growth.
Which is better: Dogecoin or Shiba Inu?
The choice between Dogecoin and Shiba Inu depends on the investor’s goals. Dogecoin offers a simple and fast cryptocurrency for everyday transactions, while Shiba Inu offers more opportunities in the field of decentralized finance, but with greater volatility.
Ultimately, both coins are more attractive for their active and fun community than for serious investment opportunities.
