Shiba Inu [SHIB] has made its mark in the cryptocurrency space, closely following the footsteps of the original meme cryptocurrency Dogecoin [DOGE].
Despite being relatively new, Shiba Inu has quickly gained popularity, comparable to that of DOGE. While both cryptocurrencies share a humorous origin, they possess significant differences that set them apart.
Major Differences Between Shiba Inu & Dogecoin
Dogecoin, launched in 2013, holds the distinction of being the pioneering meme coin, marking its entry into the cryptocurrency world. On the other hand, Shiba Inu is a relatively new addition, having been introduced in 2020. Despite its novelty, Shiba Inu has quickly gained popularity and achieved comparable levels of recognition to Dogecoin.
Shiba Inu operates on the Ethereum blockchain, leveraging its infrastructure and smart contract capabilities. As a result, Shiba Inu follows the proof-of-stake (PoS) algorithm, which is a more energy-efficient consensus mechanism. In contrast, Dogecoin operates on its own independent blockchain, separate from the Ethereum network, and utilizes the proof-of-work (PoW) algorithm, similar to Bitcoin. The PoW algorithm requires miners to solve complex mathematical puzzles to validate transactions and secure the network.
Currently, Dogecoin (DOGE) has a circulating supply of approximately 139.47 billion coins. In contrast, Shiba Inu (SHIB) has a significantly larger circulating supply, amounting to around 589 trillion coins. It’s important to note that the vast difference in circulating supply between the two cryptocurrencies can impact factors such as price volatility and market dynamics.
While Dogecoin (DOGE) has gained popularity as a cryptocurrency for online tipping and small transactions, its utility is primarily focused on these areas. Dogecoin has limited smart contract capabilities compared to other cryptocurrencies.
On the other hand, Shiba Inu (SHIB) has plans to introduce various tokens and features on its platform. This includes the development of decentralized exchanges, staking mechanisms, and the integration of non-fungible tokens (NFTs). These additional functionalities aim to provide a more comprehensive ecosystem and expand the potential use cases for the Shiba Inu token.
A notable distinction between Shiba Inu (SHIB) and Dogecoin (DOGE) lies in their token supply dynamics. The Shiba Inu community actively engages in high-magnitude token burns, deliberately reducing the overall supply of the meme coin.
This burning process is a strategic effort to decrease the circulating supply and potentially create a deflationary effect on the token. In contrast, Dogecoin does not have a built-in mechanism for burning tokens and continues to mint new tokens over time, contributing to its inflationary nature.
This fundamental difference in token supply dynamics contributes to the varying inflationary or deflationary characteristics of SHIB and DOGE, which can impact their long-term value and price stability.
As of the latest data, Dogecoin (DOGE) holds a position within the top ten cryptocurrencies, boasting a market capitalization of approximately $9.92 billion. On the other hand, Shiba Inu (SHIB) is currently ranked as the 15th largest cryptocurrency with a market capitalization of around $5.10 billion.
These market cap rankings reflect the significant popularity and investor interest in both DOGE and SHIB, indicating their substantial presence in the cryptocurrency market. It’s important to note that market cap rankings can fluctuate over time as the cryptocurrency market experiences price movements and new projects emerge.
SHIB and DOGE have both cultivated strong and engaged communities around their respective assets. SHIB has emerged as a community-driven project, as evidenced by its official Twitter handle, which currently boasts an impressive following of 3.7 million followers.
Similarly, Dogecoin maintains a substantial following, with 3.8 million followers on its Twitter account. These follower counts reflect the passionate support and active engagement from the communities surrounding both SHIB and DOGE. The dedicated communities play a significant role in driving awareness, adoption, and the overall sentiment towards these cryptocurrencies.
At the time of writing, Shiba Inu and Dogecoin were trading at $0.00000849 and $0.07057 per token respectively.