Dogecoin vs. Shiba Inu: What Are the Differences and Similarities?

If you are somehow familiar with the cryptocurrency market, you surely have heard about Dogecoin and Shiba Inu. These coins belong to the group of cryptocurrencies informally known as “meme coins.”

Dogecoin and Shiba Inu have attracted attention because of their outstanding price performances in 2021. Despite trading at a fraction of a dollar per coin, these cryptocurrencies have given enormous returns to investors that hold them.

But are these dog-themed cryptocurrencies equally good as investment vehicles? What are their similarities? What are their differences? Let us discuss the Dogecoin vs Shiba Inu comparison in more detail in his article.

Dogecoin Overview

Dogecoin (DOGE) was created as a joke cryptocurrency in December 2013 by Billy Markus and Jackson Palmer, two software engineers. They adopted the meme of a Shiba Inu dog as the logo of this cryptocurrency to attract mainstream attention. The logo also reflects the fun and light-hearted nature of this project.

Dogecoin forked from Litecoin (LTC), meaning it essentially uses the same technology as Bitcoin (BTC). Dogecoin uses the proof-of-work (PoW) consensus mechanism. However, experts consider Dogecoin a better option for everyday payments than Bitcoin. Dogecoin transactions are usually faster and cheaper.

As of May 30, 2022, the circulating supply of this cryptocurrency was over 132 billion DOGE coins and trades at $0.084 per coin. According to CoinMarketCap, Dogecoin is the #10 most valuable cryptocurrency by market capitalization. It reached its all-time high price of $0.7376 on May 8, 2021.

Shiba Inu Overview

Shiba Inu (SHIB) was created in August 2020 by Ryoshi, an anonymous developer. This cryptocurrency was labeled the “Dogecoin Killer,” meaning it intends to take over DOGE’s role as a payment system. Shiba Inu is based on the Ethereum platform and can leverage smart contracts for decentralized finance (DeFi) applications.

Shiba Inu features a decentralized exchange (DEX), ShibaSwap. This DEX allows investors to stake their tokens for high returns. Shiba Inu has also entered the non-fungible token (NFT) space with ten thousand dog-themed NFTs known as Shiboshis. Shiba Inu was the top cryptocurrency performer in 2021 with a whopping +32,431,073% 1-year price change.

As of May 30, 2022, over 549 trillion SHIB tokens are in circulation. With a current price of around $0.000011 per coin, Shiba Inu is the #16 most valuable cryptocurrency per market capitalization. It reached its all-time high on October 28, 2021, selling at $0.00008845 per token.

DOGE vs. SHIB: Differences

Dogecoin was the first meme coin in the market. Despite being initially created as a joke, DOGE developed an engaged community in the following years. Apparently, Shiba Inu was launched with the expectation of mimicking Dogecoin’s unlikely success. Both cryptocurrencies had impressive price surges in 2021.

Although these digital coins share a Japanese dog as a logo, they have significant differences. For starters, SHIB is an ERC-20 token, which many see as an advantage. Running on the Ethereum platform, Shiba Inu can interact with many DeFi projects based on the same blockchain. However, DOGE is still regarded as a genuine alternative to Bitcoin for payments.

So, let us review some of the key differences between these two dog-themed cryptocurrencies to understand their pros and cons better.

Transaction Speed

Despite using PoW, Dogecoin transactions are surprisingly fast. The Scrypt algorithm is primarily responsible for this speed since it allows for a much speedier creation rate, unlike SHA-256 used by Bitcoin. For comparison, Dogecoin has an estimated block creation time of approximately one minute, whereas Litecoin’s block time is 2.5 minutes; Bitcoin’s block time is 10 minutes. Shiba Inu, being an ERC-20 token, has slower transactions than Dogecoin. Yet, with the eventual implementation of the proof-of-stake (PoS) mechanism by Ethereum, SHIB transactions could be faster.

Supply and Demand

As with many other assets, the price of a cryptocurrency is dictated by supply and demand. Some cryptocurrencies limit their supply to create scarcity. In some cases, scarcity increases the price of a cryptocurrency. That is not the case with Dogecoin, which has adopted an inflationary mechanism. Dogecoin increases its supply by around 5 billion DOGE per year. In this way, whales are prevented from taking large sums out of circulation. This approach will keep transaction fees low.

In contrast, Shiba Inu has a total supply of one quadrillion SHIB tokens. However, many SHIB tokens were burned, and others were locked up in the Uniswap exchange. So, the only way to trade SHIB is on the open market.

Market Capitalization

The market capitalization of a cryptocurrency is the total value (usually in US dollars) of all the existing coins. It is calculated as the product of the circulating supply by the trading price per coin. As of May 30, 2022, Dogecoin had over $11.1 billion market capitalization, whereas Shiba Inu had over $6.4 billion. At some point, both cryptocurrencies had similar market cap values. However, Shiba Inu has had a more significant price drop in 2022 than Dogecoin.

DOGE vs. SHIB: Similarities

As seen, Dogecoin and Shiba Inu have substantial differences. When it comes to similarities, the obvious one is the meme dog that both coins share as their logos. Also, both cryptocurrencies trade for a fraction of a dollar per coin. According to several experts, both cryptocurrencies are highly volatile. For example, their prices change drastically when a celebrity like Elon Musk mentions any of these coins on social media (usually Twitter).

Where to Buy Dogecoin?

As said, Dogecoin is a highly volatile and speculative cryptocurrency. Therefore, a few centralized exchanges (CEXs) list it for trading. However, our instant exchange platform, LetsExchange.io, supports DOGE and more than 370 other cryptocurrencies. Our exchange offers very competitive rates in the market, and no registration is needed to transact on it.

Where to Buy Shiba Inu?

Since Shiba Inu is an ERC-20 token, you can purchase it on decentralized exchanges (DEXs) like Uniswap. However, if you want to benefit from very competitive rates, LetsExchange is a better option to buy this asset using cryptocurrency.

Conclusion

The hype has been one of the main factors leading to the success of Dogecoin and Shiba Inu. While these cryptocurrencies have the necessary infrastructure to work as payment systems effectively, none of them has brought innovation to blockchain technology. Moreover, both cryptocurrencies are highly volatile. Yet, these cryptocurrencies could bring excellent returns if one invests in them cautiously. One can leverage the wild price fluctuations of these cryptocurrencies to have substantial profits.

FAQ

Will Shiba Inu Beat Dogecoin?

To many, Shiba Inu is just a copycat of Dogecoin to cash in on the latter’s success. It is true. However, Shiba Inu has some features that eventually could give it advantages over Dogecoin. Firstly, as an ERC-20 token, Shiba Inu can interact with many DeFi projects on the Ethereum platform. Secondly, Shiba Inu features its own exchange, ShibaSwap. Finally, Shiba Inu is entering the NFT market, which might have a bright future. If all these developments succeed, Shiba Inu could become the Dogecoin Killer it tried to be when it launched.

Is Shiba Inu Coin a Good Investment?

Shiba Inu is a cryptocurrency with little to no intrinsic value. Its price is almost entirely driven by community sentiment. Hence, it is a high-risk investment. However, if you can tolerate the risk, Shiba Inu can be a very profitable investment.

Is It Better to Invest in Shiba Inu or Dogecoin?

None of these cryptocurrencies is considered a safe investment. However, if you are comfortable with the high risk and volatility, both cryptocurrencies could bring enormous returns resulting from wild price fluctuations. They could bring massive losses too. Dogecoin may carry slightly less risk because it has been on the market for several years. But Shiba Inu could give you more opportunities for future growth. So, the decision to invest in one or the other is entirely yours.

Disclaimer

Please keep in mind that the above information is based exclusively on our observations and is provided for informational purposes only. It doesn’t constitute any kind of financial advice nor represents an official forecast. Cryptocurrency is a highly volatile asset, and you are investing in it at your own risk.