2021 was one of those years that someone would call “odd” the crypto industry. Bitcoin surpassed its all-time high but went through a massive price correction not quite after hitting the stars. Dogecoin became Elon Musk’s favorite crypto asset in the altcoin scene, but not for long.
A bit later in the year, a new coin started impressing some people looking for alternatives but soon became the hit of the moment – we’re talking about Shiba Inu. In this article, you will have a detailed comparison to determine whether Doge or Shiba Inu is the best meme coin available in the market.
What’s a Meme Coin?
Essentially, a meme coin is a digital asset created as an internet joke or based on a pre-existing meme. Usually, this term might be applied to some cryptocurrencies to imply they will be short-lived or will likely lose their value when faced by market volatility.
Most meme coins started within a community where people collected or traded these assets to be part of a joke. However, things rapidly changed, and now they are well-known assets rapidly increasing in popularity. Hence, they’re a great choice to long on platforms like Bitlevex once they’ve bottomed.
Dogecoin vs. Shiba Inu – An Honest Comparison
Dogecoin Overview
Launched in 2013, Dogecoin was created as a joke. At that time, the cryptocurrency industry was starting, but there were already people investing in digital assets that did not understand.
Software engineers Billy Markus and Jackson Palmer decide to mock these “wannabe” investors by creating a functional or valuable coin. However, things didn’t go as expected, as the coin started attracting a large following.
Dogecoin’s initial success is largely credited to the fact that the community found the meme approach easier to engage with than other “serious” cryptocurrencies, which boosted its popularity and created a solid community.
In 2015, Markus and Palmer decided to step away from the project, leaving the Dogecoin scene without leaders. Yet, it did not deter people from investing more and more in the “doggo,” so the community assumed leadership and continued.
Dogecoin was the center of a huge controversy involving billionaire Elon Mus. The Tesla CEO used his Twitter account to praise the altcoin and boost its popularity outside the original community, which attracted a massive number of retail investors.
Dogecoin has a market cap of approximately $38 billion, with a circulating supply of 132 billion and available on more than 1900 merchants still, whether it will transition into a serious project to build a reputation as a viable digital investment.
Shiba Inu Overview
Created in 2020, Shiba Inu is also a popular meme coin with a similar language to Dogecoin. Nonetheless, it was not created as a joke, as the project’s main reason to exist is replacing Dogecoin.
Launched in August 2020, Shiba Inu has a circulating supply of 550 trillion with a market cap of $40 billion.
However, although the new meme coin did not linger to surpass Doge’s market cap, there are still facts about it that do not seem solid. First, Shiba Inu has an anonymous founder, which is not positive.
In its original whitepaper, the project dedicates an entire page to praise Vitalik Buterin and his philanthropic approach to donating $1 billion worth of Shiba Inu to India’s COVID relief fund.
Still, while the project presents Buterin as a “friend of Shib,” Ethereum’s creator is unwilling to accept such unwanted attention. After the project proposed to give Vitalik 50% of its tokens as a marketing stunt, Buterin declined, stating he did not want the responsibility involved.
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The Verdict
Both altcoins have similar characteristics and managed to stay at the top 10 cryptos by market cap, backed by fan-led communities of loyal fans that actively support them on social media channels.
Unfortunately, neither of these two light-hearted altcoins have real-world utility, which plays a huge role in an investment’s valuation and credibility. As the cryptocurrency trade becomes more and more mainstream, altcoins are increasingly evolving into “serious” assets.
While the lack of functionality is still a persistent issue, it is impossible to deny that Dogecoin and Shiba Inu are still feasible options within an investment strategy that aims for short-term gains.
Dogecoin or Shiba Inu – Conclusion
Ideally, the best approach for retail investors looking for “explosive” novelties in terms of crypto investments is to take a step back and set their sights on a more solid, long-term-oriented strategy.
Short-term gains are best, but long-term wealth is essential in sustaining any crypto portfolio. Ultimately, the desire to make money by purchasing meme coins without a proper strategy is not worth it if there is no risk management involved.