SHIBA Inu and Dogecoin have been some of the most popular meme coins this year – but there are a few notable differences between the two.
A meme coin typically gains off a social media or internet-based joke.
Specifically, billionaire Elon Musk has been a key ally in driving up the price for both Dogecoin and Shiba on his Twitter account this year.
At times he’ll post a tweet or a picture that could send the price of the two cryptocurrencies soaring.
He did this earlier this month when he posted a picture of his Shiba puppy on the social media site.
That helped Shiba surge to new all-time highs this month.
The gains of Dogecoin and Shiba have been similar to why GameStop and AMC have surged this year – with a Reddit mob aiming to put hedge funds out of business.
We explain a few differences you need to know between Dogecoin and Shiba below.
Before we do, keep in mind that making money through cryptocurrencies is never guaranteed, so you may actually lose all the money you put in.
In other words, it’s important not to invest more than you can afford to lose or into anything you don’t understand.
Cryptocurrencies are highly volatile, meaning their values can soar and crash with no notice.
There’s also scant regulation for cryptocurrency firms, so you’re not guaranteed protection if and when things go wrong.
Their values don’t rise at the same time
While Dogecoin and Shiba tokens feature the same dog – they don’t always rise at the same rate.
For instance, Shiba has skyrocketed more than 500% in the past month, while Dogecoin has just climbed 27% in the same period.
So, Mr Musk’s tweeted picture of the dog has had a much larger effect on Shiba.
But it could also be that Shiba is classified by some as the “Dogecoin killer.” Some claim that Shiba’s technology is more community-driven.
Speaking of technology, some might not know that Dogecoin uses similar technology as the world’s largest cryptocurrency Bitcoin.
The technology of Dogecoin is based on Litecoin, which is the so-called little brother of Bitcoin.
More specifically, Dogecoin operates as a proof-of-work cryptocurrency, which means it uses computing power for its blockchain similarly to Bitcoin.
On the other hand, Shiba runs on Ethereum’s blockchain – meaning its primary token SHIB is an ERC-20 token.
Not the same supply
Although both meme coins have an impressive amount of supply – the edge in this regard goes to Shiba.
Every minute, Dogecoin incentivizes its miners with 10,000 Dogecoin – which continues to boost the supply.
That said, Shiba’s quantity is still much higher – having a maximum supply of a quadrillion tokens.
Future price predictions
Because Shiba has been a much larger gainer lately – many forecasters expect bigger gains for the “Dogecoin killer” in the future.
Currently, Shiba and Dogecoin are trading at $0.00004735 and $0.2669 respectively.
Wallet Investor expects Shiba to be valued at $0.000053 in a year’s time.
And Coin Price Forecast predicts that the price of Shiba will be $0.00008968 by the end of 2021 and $0.00010793 by the middle of next year.
In comparison, Wallet Investor sees the price of Dogecoin reaching $0.517 at this time in 2022.
Meanwhile, Coin Price Forecast sees the price of Dogecoin rising to just $0.39 at the end of 2022.
But keep in mind, price predictions can change if bearish trends strike on unfavorable news like China’s crypto ban.
We’ve also done other price predictions for other cryptocurrencies including Bitcoin, Ethereum, dYdX, EOS, and Cardano.