Cryptocurrency always brings innovations to the financial industry. The introduction of meme coins in 2013 brought new layers of fun and humor to the market. Among them, Dogecoin (DOGE) and Shiba Inu (SHIB), have managed to garner a strong fan base due to their utility, even though they started as jokes. The first meme coin, Dogecoin became successful quickly with the community support it gained. Shiba Inu was developed later by taking inspiration from Dogecoin. Both coins revolve in the crypto space with a shared dog-theme connection, driving attention and high market capitalization with DeFi tools and NFTs. This article will discuss the origin, market performance, and key differences between Dogecoin and Meme coin, giving broader insights for both beginners and experienced investors.
What is Dogecoin (DOGE)?
Developed by two software engineers Billy Markus and Jackson Palmer in 2013, as fun with an image of a Shiba Inu dog, contributing to its quick success. Primarily, it is a decentralized peer-to-peer digital currency that operates on blockchain technology. Known to be working on its own blockchain, it uses a proof-of-work (PoW) mechanism.
In contrast to how Bitcoin works on a limited supply of 21 million coins, Dogecoin has an unlimited supply of coins. Nearly 5 billion Dogecoins are mined each year, making it an inflationary cryptocurrency. It indicates the futuristic growth of the coin, with better stability and reliability, making it a popular choice for microtransactions, donations, and tipping content creators. All these features make it ideal for everyday transactions.
Elon Musk, CEO of Tesla, has improved its popularity further with his tweets by calling it “The people’s crypto,” marking a high surge in its price. Moreover, its community is known for fundraising and supporting events like NASCAR. Such endorsements from public figures are essential to maintain momentum and scalability in the cryptocurrency world.
What is Shiba Inu (SHIB)?
Known as the “Dogecoin Killer,” Shiba Inu was developed in August 2020. The anonymous founder of the project Ryoshi, developed the project on the Ethereum blockchain, intending to capitalize on the popularity and support of Dogecoin. Since then, the project has included tokens like LEASH for scarcity-driven value and BONE for governance.
Unlike Dogecoin, it works on the ERC-20 blockchain, with a supply of 1 quadrillion tokens, with almost 50% burned at its launch. Its functions extend far beyond a meme coin, it offers a decentralized exchange, ShibaSwap, for trading and staking coins. Further, it plans to launch Metaverse and several NFT projects with “Shiboshis,” developing a project “Shib: The Metaverse.” Shina Inu has managed to improve traction with its low fee and rapid growth with its active social media community, the ‘ShibArmy’ driving its growth. However, it has a deflationary nature, making it more attractive to its investors and its community.
Understanding the Differences
Even though both Dogecoin and Shiba Inu are developed by driving inspiration from the popularity of memes, they differ in several ways. Dogecoin is developed using a proof-of-work consensus mechanism, making it the best option for microtransactions. The inflationary supply, with unlimited coins and nearly 5 billion coins mined annually, ensures a proper supply of coins. In contrast, Shiba Inu works on an Ethereum-baked blockchain, and the ERC-20 token works to improve its functions. Shiba Inu, with its deflationary feature, increases the scarcity of tokens. The table gives a snapshot of the key differences between Dogecoins (DOGE) and Shiba Inu (SHIB).
| Feature | Dogecoin (DOGE) | Shiba Inu (SHIB) |
| Launch | 2013 | 2020 |
| Blockchain | Native blockchain- PoW consensus | ERC-20 tokens |
| Supply Model | Inflationary (Unlimited supply) | Deflationary (Limited Supply) |
| Creators | Billy Markus and Jackson Palmer | Ryoshi |
| Utility | Transactions, Tipping, and Donations | DeFi, NFT, Metaverse |
| Tokenomics | 5 billion coins annually | 1 quadrillion |
Dogecoin or Shiba Inu: what to choose?
While both meme coins offer several benefits, choosing between them depends on your requirements such as interest, risk tolerance, and goals.
- Risk Tolerance: Consider your risk tolerance before you choose to invest. Known to be developed in 2013, Dogecoin is well-established. It has a minimal cost and is less volatile, making it a steady option. Shiba Inu on the other hand poses higher risks but offers better rewards. Investors who can tolerate risks with high rewards can consider investing in Shiba Inu.
- Simplicity and everyday use: Dogecoin can be considered as an option if fast and low-cost transactions are your investment goals. With its inflationary supply, it is ideal for everyday transactions, donations, and tipping.
- Diversity: For access to a diverse ecosystem, investors can consider Shiba Inu, as it gives access to DeFi, Shibaswap, and other Metaverse projects, making it ideal for long-term opportunities.
- Assess your goals: Dogecoin offers constant returns whereas Shiba Inu is ideal for investors looking for high-returns.
Conclusion
Both Dogecoin and Shiba Inu, driving inspiration from memes, have become established in the cryptocurrency landscape. Dogecoin, which emerged in 2013, is designed for everyday transactions and utility. Similar to bitcoin, it works on proof-of-work consensus, on the blockchain. It is inflationary with an unlimited toke supply. Roughly, 5 billion new coins are generated each year, facilitating steady inflation. Shiba Inu was developed a few years after Dogecoin, in 2020 by an anonymous developer, Ryoshi. It works on the Ethereum blockchain, with a fixed supply of 1 quadrillion with token burns.
Choosing between the two meme coins solely depends on the needs and requirements of investors. If you are looking for steady growth with minimal risks, you can consider investing in Dogecoin. Shiba Inu offers higher growth but comes with significant risks and volatility.