Do any of the dog coins have strong fundamentals? That’s a question often asked by investors who buy bitcoin and other coins that aim to change the financial system as we know it.
And while dog-themed coins are rather useless, they have seen massive growth in popularity, adoption, and price. The “why” is irrelevant, as in bull markets everything goes. So where should you invest for a quick profit? Let’s have a look at the two most popular options.
Doge vs Shiba Inu – Analysing both options
Let’s look at several aspects to better understand which coin is best to invest in.
Doge creates 10,000 new coins per block, and each block requires about one minute to be filled. This increases the total supply by 14.000.000 per day, making the repetitive pumps we have seen over the past unsustainable. Read more about this here.
Shiba Inu, on the other hand, does not follow a PoW protocol. As an ERC-20 token, it aims to focus on PoS, and does not issue more coins than those already in the market (read more here). Vitalik Buterin recently got rid of his portion of SHIB, which amounted to 50% of the total supply, leaving about 394 trillion tokens available in the market. While the amount of coins is significantly higher, tokenomics suggest that SHIB might have better profitability chances for new investors, as no new coins enter into circulation.
Dogecoin was primarily built as a joke and was treated as such for the longest time. The community it has managed to build is simply focusing on two things – the coin’s ability to remain relevant for such a long period of time and the fact that it is the cheapest coin in the top 10. It is thus highly speculative and retail-oriented. That said, its community has seen lots of growth over the past year thanks to promotion from celebrities, all of which we analyze in the next chapter.
Shiba Inu was pretty much unknown about a year ago and only grew in popularity when retail and Twitter lurkers discovered it as a second-chance for profit, next to Dogecoin’s massive success. The 13.000% pump that Dogecoin experienced in the past 5 months was missed by many investors, and they all now expect to see Shiba do the same, given the recent news and exchange listings.
Backers and supporters
Dogecoin has managed to amass a lot of high-profile supporters and many wonder if it is the result of a joke or real, actual interest. The most popular example here is Elon Musk, founder of Tesla and SpaceX, who has been actively promoting the cryptocurrency online, causing a large number of celebrities to follow the trend and do the same as well.
Shiba Inu does not really have high-esteemed supporters that can influence its price direction. However, half of the tokens were sent to Vitalik Buterin, who wrote a letter about SHIB investors before giving a portion of them away to charity. The announcement was seen as bullish for SHIB investors and many believe that the news has not yet been priced in.
Retail interest seems to be equal with both tokens at the moment, as new investors are not very focused on the fundamental strengths and history of coins. Instead, they are more focused on the price, the price-growth potential, and the accessibility on exchanges.
Learning from history
Dogecoin was created as a joke and was never expected to grow as far as it has. Shiba Inu, on the other hand, was created to support a community that felt left out. It was used massively for charity and holders have been praised as such. When we look at history, we find out that many coins have “popped” out of nowhere to grow fast in periods of bull markets. This means we can’t leave SHIB out of this comparison simply because of its “youth” compared to established DOGE.
Which option is best?
If you’re reading this, you’re probably invested in either one or both of the Dog coins, expecting cryptocurrency prices to increase over time. And even though the coins are not…