Difference Between Dogecoin & Shiba Inu – A Comparison Guide
Dogecoin Vs Shiba Inu
It is easy for a layperson to get confused over the difference between Dogecoin and Shiba-Inu cryptocurrencies. These cryptocurrencies cost less than a dollar and bear the same mascot- the Shiba Inu dog. However, Dogecoin and Shiba Inu have some differences despite the common similarities.
It suffices to say that neither Shiba Inu nor Dogecoin are headed for cryptocurrency market dominance. This is majorly due to both coins having low levels of technical credentials and innovation, like in first generation cryptocurrency (Bitcoin) and second generation cryptocurrency (Ethereum).
Difference Between Dogecoin and Shiba Inu
As mentioned earlier, Dogecoin and Shiba Inu bear similarities, but some differences set them apart. Below are the key differences between the two cryptocurrencies:
Transactions and Speed
Dogecoin has higher transaction speeds than other cryptocurrencies due to its use of the Scrypt technology. It can hold 40 transactions per second, having a 1-megabyte block size and one-minute blockchain. On the other hand, Shiba Inu transactions per second are still affected by its dependence on Ethereum. Currently, the currency does not have much design flexibility, and it bears the brunt of soaring fees.
Supply and Demand
Dogecoin does not limit its supply like other cryptocurrencies. The cryptocurrency has adopted an inflationary system and intends to remain a genuine peer-to-peer system. The aim is to prevent rich investors from holding large quantities of the token, preventing its circulation.
Conversely, the Shiba Inu developers employed a different approach to its supply mechanism. Shiba Inu coin supply is currently more than 500 trillion, with the cap set at one quadrillion.
Dogecoin Vs. Shiba Inu: Price History
Comparing previous price performance between the two cryptocurrencies is a good way to determine which of them to invest in. While this will not only suffice for accurate market predictions, you will be able to determine the effect of market forces on each coin.
Dogecoin made gains amounting to 300% two weeks after it was launched. However, according to the Dogecoin price history graph, this was short-lived because the coin flattened at minimal value for the following years.
In 2017, Dogecoin experienced another surge from $0.0002 to $0.0090 before the end of the year. The price dropped as soon as it rose, but it was an indication to investors in Dogecoin that the currency had potential. In 2019, the coin was trading at around $0.0025, and the price rose to $0.0030 going into 2020. The prices later shot in 2021, reaching up to $0.082 in February. At the writing of this article, the Dogecoin price live chart indicated a value of $0.080.
On the other hand, Shiba Inu was launched in 2020 with a price level of <$0.00000001. This price was kept low to encourage Shiba Inu investing and the Shiba Inu price history and remained that way for the rest of that year. In April 2021, the price shot to $0.0000036, and the value jumped further to $0.0000826 in October. Shiba Inu token price chart indicated a value of $0.00001069 during this writing.
Dogecoin Vs. Shiba Inu: Future Predictions
According to TradingBeasts, Dogecoin future price will be $0.22 at the end of 2022. The cryptocurrency will keep the momentum moving into 2023, and the price will reach $0.30 in 2024. Conversely, DigtalCoinPrice has less optimism about the forecast of Dogecoin. It forecasts the cryptocurrency will hit $0.18 at the end of 2022 and will only get to $0.40 in 2027.
The future price of Shiba Inu is difficult to make since the cryptocurrency typically moves out of synch with the cryptocurrency market. DigitalCoinPrice estimates that SHIB will be at $0.000028 at the end of 20022 and reach $0.000047 by 2025. Meanwhile, TradingBeasts estimates SHIB will hit $0.000044 by 2025.
Dogecoin Vs. Shiba Inu: Expert Opinion
There are mixed opinions when it comes to these two meme cryptocurrencies. A Dogecoin expert opinion by Nic Carter indicates that the cryptocurrency will not achieve much. Carter says investors will lose money long-term since Dogecoin has minimal technology. Even Ellon Musk seems to have cooled down with the hype of Dogecoin and, at some point, asked people to trade crypto with caution.
Shiba Inu expert predictions indicate that the coin is riding on the success of Dogecoin. Many experts have also indicated it might be too early to dismiss the coin as more traders that are new to crypto are moving into the space.
Which One Should You Buy?
You might be wondering, “Should I buy Shiba Inu coin?” Should I buy Dogecoin?” Both meme currencies have large online communities and are at par with scaling techniques. However, Dogecoin has a slight advantage over Shiba Inu.
The price of Dogecoin is highly determined by its whales, while that of SHIB is mainly driven by fear of missing out by retail investors. Their prices are also lower due to the high supply. Therefore, whether you settle for Shiba Inu or Dogecoin, you should know that for the coins to reach $1, there needs to be a market capital increase of 32,000× and 5×, respectively.
We cannot dismiss that these cryptocurrencies are significantly built around hype. They have proved that their infrastructures are functioning, but neither Dogecoin nor Shiba Inu coin has new innovations that it brings to the blockchain world.
However, it might be too early to rule out community-led cryptocurrency projects. The Dogecoin community is a testament to this after they were able to soar the currency to among the top ten in terms of market cap.
Dogecoin seems like a stronger investment compared to Shiba Inu on the surface. However, Shiba Inu has some technical advantages over Dogecoin and several pipeline developments like entering into NFTs. Therefore, you will need to follow the developments of both coins before deciding which one to invest in.