A tail of two coins: Dogecoin vs Shib Coin
This year, the world has seen the rise of meme coins when Dogecoin and Shib coin’s values skyrocketed in the market. The coins that started out as jokes are no longer viewed as comical relief to the serious approach by investors towards cryptocurrencies. Instead, they are now considered viable tokens for investing and trading.
From late April to early May of 2021, the Shib coin made noise in the crypto space when its value rose to over 40,000%. Preceding this event was the rise of Dogecoin crypto, which, as of June 2021, ranks as the 6th largest token by market capitalization according to CoinMarketCap.
With the rise of these dog-inspired coins, many experts and crypto enthusiasts are pitting them against each other to see which of the two will fare well in the long run. Are you curious to know who’s the top dog? Learn more about these two cryptocurrencies.
Shib coin vs Dogecoin: What’s the difference?
Dogecoin and Shib coin crypto are two assets unique in their own right. While they’re both considered as ‘meme tokens’, they both have differences in terms of functionality and origin. Here’s everything you need to know between the two tokens:
Shib Coin (SHIB): The Dogekiller
Shib coin (SHIB), also dubbed by investors as the ‘dogekiller’, was launched in August 2020 by an anonymous person or organization called ‘Ryoshi’. This asset is an ERC token developed on the Ethereum blockchain. Inspired by the Dogecoin, the Shib coin is also modelled after the Shiba Inu dog breed.
According to the ‘woofpaper’ of SHIB, the creators minted 1 quadrillion tokens, half of which they stored in a decentralised exchange called Uniswap. The other 50% was ‘burned’ to the Ethereum co-founder, Vitalik Buterin.
SHIB was dubbed the ‘dogekiller’ by experts because of its ability to outpace the value of Dogecoin without exceeding the $0.01 value.
The Shib coin has its own decentralised exchange called ShibaSwap that enables users to buy and trade Shib tokens for other digital currencies. According to the creators of SHIB, the exchange is a ‘safe place to exchange your valuable crypto while staying decentralised’.
Right now, SHIB is available on exchanges such as WazirX, KuCoin, OKEx, Huobi, Binance, ProBit and CoinBene.
Dogecoin (DOGE): The Bitcoin Parody
In 2013, Dogecoin was launched as a meme cryptocurrency and parody during the time when cryptocurrencies were gaining traction in the market. The token was created by Billy Markus and Jackson Palmer, inspired by the dog meme trending at the time.
Dogecoin (DOGE) is a digital asset based on Luckycoin, an asset created based on Litecoin. It utilises LTC’s scrypt technology and proof of work consensus protocol. When it was released, the creators weren’t expecting the coin to become popular. However, two weeks after its release on December 6, 2013, the asset’s value skyrocketed to 300%.
The Dogecoin blockchain is managed by miners who are incentivised for managing and maintaining the network. Because Dogecoin was created without a lifetime cap, the asset is often termed as an ‘inflationary coin’, meaning the price of the asset increases and decreases its purchasing power.
SHIB vs DOGE: Who will be the top dog in the market race?
When it comes to performance, both assets are performing spectacularly in the market with a few drawbacks here and there. In May 2021, the SHIB coin performed 17% higher than its regular trading in the market.
However, the asset’s value dropped in the market during the last week of May 2021 when Ethereum co-founder Vitalik Buterin burned the SHIB tokens given to him by the Shib coin developers.
Additionally, the crackdown on crypto-related transactions in China also affected the asset’s growth, especially since main users are concentrated in the country.
On the other hand, Dogecoin’s performance is one of the most notable progress in the market in 2021 as its value rose to almost 85,000%. On June 2, 2021, its value spiked again by 15% after Coinbase Pro announced it will be accepting inbound transfers of Dogecoin.
Depending on who you ask, the two assets have their own highs and lows. If you’re looking for something light to start investing in cryptocurrencies, your best bet is SHIB. However, if you’re looking for an asset with more traction, it’s best to opt for DOGE.
SHIB vs DOGE: Are meme coins all bark and no bite?
The rise of meme coins sparked a lot of comments from users and experts, usually saying that the birth of these joke tokens is undermining digital assets such as Bitcoin, Ethereum and other altcoins.
While meme coins don’t hold the value of these digital currencies, they have the potential to usher in the age of virtual assets, especially for people who don’t have the means to catch up with the fast-paced movement of the crypto market.
However, it’s also advised for users to trade meme coins with caution because their inflationary nature can also pose problems, especially for those who are planning to make long term investments.
Words by: Rain Quintana