Shiba Inu vs Dogecoin
We are affiliated with several companies, if you opt to purchase a product we may get a commission at no additional cost to you.
Shiba Inu vs Dogecoin: Last year’s total return of 29 percent for the benchmark S&P 500 outperformed its average yearly total return of 11 percent since 1980. Despite this outstanding performance, cryptocurrencies will once again outperform the stock market in 2021.
The total value of the cryptocurrency market had almost quadrupled to $2.2 trillion by the end of the year. The “Big Two,” Bitcoin and Ethereum, which together account for 60% of the $2.2 trillion crypto market capitalization, were clearly instrumental in this increase.
Investors’ attention was drawn away from Bitcoin and Ethereum in 2021. Shiba Inu (SHIB 1.97 percent ) and Dogecoin both received this designation ( DOGE 1.37 percent). As we go into a new year, the big issue is: Which ultra-popular cryptocurrency is the better investment in 2022? Let’s look at it more closely.
Why is Shiba Inu so popular among optimists?
The first is Shiba Inu, a meme currency that had a record-breaking rise of about 46,000,000 percent in 2021. This implies that on January 1, 2021, those who had the luck, guts, and capacity to invest a little more than $2 in SHIB became billionaires.
Shiba Inu’s historic rise has been fueled by its enhanced prominence. It’s one of the most popular cryptocurrencies in the United States, with more than 1.1 million investors owning SHIB tokens. When more crypto exchanges accept SHIB for listing, visibility and liquidity will increase.
The debut of ShibaSwap, a decentralized exchange, in July was a good trigger. The option to stake coins on ShibaSwap has pushed investors to hold onto their coins for longer periods of time, in addition to enhancing liquidity.
Shiba Inu also landed a handful of important merchants last year, which must delight optimists. AMC Entertainment, a movie theater chain, will begin accepting SHIB for online payments in the first quarter, while Newegg Commerce, a tech-focused e-commerce company, began accepting Shiba Inu in December.
There will be a layer-two blockchain project Shibarium going live this year. Non-fungible token (NFT) games will follow soon after. In recent months, blockchain-based games and everything related to the metaverse — the next generation of the internet that enables users to engage in 3D virtual settings — have been particularly popular.
The bear case for Shiba Inu
But this is the bitcoin world, and every coin has two sides.
One of the most serious issues with Shiba Inu is the breed’s lack of competitive advantages and distinctiveness. Shiba Inu, on the other hand, is currently nothing more than an ERC-20 token generated on the Ethereum network. Because of its popularity, the Ethereum network is prone to congestion, processing latency, and high transaction fees. Shiba Inu, in other terms, isn’t a very effective payment currency.
It’s also difficult to disregard SHIB’s real-world use. Shiba Inu has a market valuation of $18 billion, which is low given practically other cryptocurrencies have little usefulness. According to the online business directory Cryptwerk, just roughly 600 retailers worldwide would take SHIB as payment, and 44 of these “merchants” are nothing more than crypto exchanges. Aside from AMC and Newegg, the retailers that take Shiba Inu are primarily niched internet enterprises.
Pessimists will also use history to their advantage. After rising nearly 46,000,000 percent last year, bearish expect SHIB to retrace its tracks significantly in 2022.
Why are optimists thrilled about Dogecoin? (Shiba Inu vs Dogecoin)
Then there’s Dogecoin, which was the most-searched digital currency in the United States last year, surpassing Bitcoin and Ethereum. The Shiba Inu-inspired coin gained about 3,000 percent by the end of 2021. It’s hardly Shiba Inu territory, but it’s a greater return than any one stock generated last year.
Elon Musk, CEO of Tesla Motors, is perhaps the most important catalyst for Dogecoin in 2021 and beyond. The world’s wealthiest individual owns just three digital currencies, one of which is Dogecoin. He’s no stranger to tweeting Shiba Inu-themed memes on Twitter, which serves as a makeshift advertisement for enthusiasts to purchase DOGE tokens.
Elon Musk has tweeted that he would be working with Dogecoin’s creators to strengthen the blockchain-based network, in addition to being a strong backer of the project. For what it’s worth, project developers have already been hard at work on network modifications aimed at lowering transaction costs and making DOGE more competitive in the crypto sector. At the present, transactions on the Dogecoin blockchain are less expensive than those on the Bitcoin or Ethereum blockchain networks.
Increased adoption excites enthusiasts as well. Tesla began accepting Dogecoin for limited items, while other large corporations, like AMC, have given DOGE the thumbs up.
The Dogecoin bear case
Interestingly, Dogecoin’s bear case is almost similar to that of the Shiba Inu.
As with Shiba Inu, Dogecoin’s primary weakness is a lack of competitive advantages and distinction. While its network is less expensive than those of Bitcoin or Ethereum, it is much more expensive than the networks of practically all other popular payment currencies, and it cannot expand nearly as rapidly. In summary, there is no compelling need for enterprises to rush to accept DOGE as a method of payment.
To expand on the last point, Dogecoin launched a little more than eight years ago, but according to Cryptwerk, the cryptocurrency has only landed in 1,982 shops willing to take its token as payment. With approximately 10% of this amount accounted for by crypto exchanges, Dogecoin offers minimal real-world use.
Pessimists, too, have a history with Dogecoin on their side. Between early November 2020 and early May 2021, this cryptocurrency rose more than 27,000 percent. Gains of this size in payment currencies have almost invariably resulted in retracements of 93% to 99%. DOGE coins have lost 77% of their value from May’s all-time high.
Shiba Inu increased by over 46,000,000 percent in a single year, whereas Dogecoin has only retraced a little more than 60%. Based on the scale of reversions we’ve seen in the crypto industry after six-digit percentage rises, a 99 percent drop is a distinct possibility.
Now you can do your future purchases on the basis of this article ‘Shiba Inu vs Dogecoin’. Cryptocurrency is a risky game and those who know the market well can gain but the chances of loss are always there, so be careful in your buy and selling time.