Shiba Inu gained more than 100% in the past week, temporarily displacing Dogecoin as the 10th biggest cryptocurrency and top-ranked memecoin by market cap. Needless to say, SHIB holders were euphoric. How do the memecoins really measure up? Here’s our take.
Dogecoin is a better store of value
Dogecoin was developed in 2017 as a fork of Litecoin, which was a Bitcoin fork itself. This lends Dogecoin a very reliable infrastructure. In addition, it can scale much better than Bitcoin because it’s based on the Scrypt mechanism.
Elon Musk does not own SHIB
The Dogefather himself, tech entrepreneur, is a strong advocate and supporter of DOGE. However, we couldn’t say that about Shiba Inu, of which he owns none.
Vitalik Buterin gave all of his SHIB away
About 50% of total SHIB supply was given to Ethereum creator Vitalik Buterin back in May. While many saw this as a publicity stunt by Shiba Inu, it would be worth over $30 billion now, and some holders began to despair, believing their investment was being put in the hands of someone who was not involved in Shiba in any way.
Nor did he wish involvement – the young billionaire rejected the project, donating 50 trillion SHIB to an Indian Covid-19 charity fund founded by Sandeep Nailwal of Polygon.
Dogecoin creates blocks much faster
Thanks to the Scrypt algorithm, which is the major point of divergence between Dogecoin and Bitcoin’s SHA256, Dogecoin can create blocks much faster. In fact, Dogecoin is about ten times faster than Bitcoin. In comparison, Shiba Inu runs on Ethereum’s proof of work mechanism. In theory, this is not unlike Dogecoin. In practice, it is much slower.
When Ethereum 2.0 launches, things could change. A move to more environmentally friendly proof of stake validation for ERC-20 token transactions is also planned.
Shiba Inu is too cheap for adoption
Shiba Inu has yet to break past one penny, which makes it hard for institutions and companies to consider it as a means of transaction. Its low price is a serious barrier to its adoption.
Dogecoin has a solider community
When a subreddit community decided to hike up the price of GameStop shares in response to institutional shorting against the popular entertainment franchise. Within 24 hours, Dogecoin had risen to prominence sensationally. Single-handedly, the community rallied DOGE by over 140%, free from any institutional support.
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