DogeCoin and Shiba Inu are popular meme coins with excellent community support.
In this new series, we compare some key crypto assets and how they have fared recently. While doing so, we ask this question – if an investor has Rs.1,000 to spare today, how can he/she allocate the capital between these assets? Today, we aim to compare Dogecoin and Shiba Inu, two of the biggest meme coins residing in the top 20 crypto list by market cap.
Dogecoin (DOGE) was launched in 2013 by engineers Billy Markus and Jackson Palmer as a joke about Bitcoin’s volatility. Doge grew in popularity in 2021, making its market cap push past $32 billion (current market cap is $18.7 billion). It’s now the 11th largest crypto by market cap. DOGE is a hard fork of Litecoin. It uses a proof-of-work consensus protocol to verify transactions on its networks. Dogecoin is less decentralized and has infinite supply when compared to Bitcoin. But it can be a slightly better option for making everyday payments, as its transactions are processed faster and at a lower cost.
DOGE’s recent performance
Source: TradingView, Binance
Many celebrities have shown their support for DOGE, including Elon Musk, Snoop Dogg, and Kevin Jonas. The community aims to make DOGE a truly peer-to-peer payment system, and currently, over 2,000 companies accept DOGE as payment.
Shiba Inu (SHIB)
Shiba Inu (SHIB) made its debut in August 2020 as a direct competitor to Dogecoin. SHIB was launched by an anonymous founder Ryoshi and is based on Ethereum blockchain. In 2021, Shiba Inu outperformed Dogecoin and briefly overtook it getting great cheer from its loyal fans. The current market cap of SHIB is more than $15 billion and is ranked 15th in the crypto charts— just four spots below Dogecoin. Shiba Inu is built on Ethereum, meaning it can also leverage smart contracts to create decentralized finance (DeFi) products.
SHIB’s recent performance
Source: TradingView, Binance
Shiba Inu has a passionate community that is working toward driving its adoption. The community is also working on several projects such as their NFT marketplace, DEX ShibaSwap, Shiberse, etc. Some companies that accept DOGE also accept SHIB as payment.
Verdict: Try to avoid memecoins
Dogecoin (DOGE) and Shiba Inu (SHIB) were the star performers of 2021, with incredible gains. Their communities are trying hard to build solid use cases for their respective coins. Though both meme coins have a lot in common, its performance has been driven by hype created by influencers and social media. It is always better to avoid them or, if you must, invest a very small percentage of your portfolio in them.
Between the two, Shiba Inu may be a better option in the long run, given the web3 and DeFi utilities and the number of projects its community is working on. Also, Ethereum’s upcoming Merge will aid in SHIB’s scalability and speed issues, if any. On the other hand, Dogecoin has limited usability as a P2P payment network.
We believe that investing in Shiba Inu (SHIB) today is slightly better than investing in Dogecoin (DOGE) and have allocated a 60% share to SHIB, the remaining to DOGE.
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Disclaimer: This article was authored by Giottus Crypto Exchange as a part of a paid partnership with The News Minute. Crypto-asset or cryptocurrency investments are subject to market risks such as volatility and have no guaranteed returns. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.