4 reasons Shiba Inu might be a better buy than Dogecoin

As expected, people have different opinions on the matter, but since Dogecoin is the initiator and all-time leader of the meme coin group – and arguably the more popular token of the two – many naturally assume that it’s also the better buy. But what if we told you that Shiba Inu might have several aces up its sleeve that can give it the upper hand in this competition?

If you read the Shib news today, you might not get that impression since media coverage usually focuses on recent events, which doesn’t always help with understanding an asset’s long-term potential. But a closer examination might reveal some interesting aspects about Shiba Inu that are worth taking into consideration when comparing it to its rival, Dogecoin

More robust technical architecture

If we look at both tokens’ figures, Dogecoin seems to win by a landslide. DOGE ranks ninth in terms of popularity, with a market cap of $25.29B and a trading price of around $0.1504. SHIB, on the other hand, occupies the 24th position in the global crypto ranking, with a market cap of only $4.86B and a trading price of $0.000008. But figures alone are not enough to gauge an investment’s true potential. You also need to focus on fundamental analysis and take into account the technical infrastructure of the projects, which in this case tells a different story

DOGE is a native coin built on its own independent Layer-1 blockchain, which some might see as an advantage. By contrast, SHIB was created as an ERC-20 token on the Ethereum blockchain, which means it borrows the network’s attributes, such as enhanced security, efficiency, and compatibility with smart contracts and the many decentralized projects that form the Ethereum ecosystem. In other words, SHIB can easily integrate with a wide range of decentralized applications (dApps), which can fuel its future development

Real-world utility

With their nods to internet culture, clever branding, and simple infrastructure, meme coins are relatable, fun, and accessible, which makes them an easy pick for traders and investors who want to dip their toes in the crypto market. Unfortunately, most tokens in this class fall short in terms of utility, and Dogecoin is no exception. The meme coin leader’s primary purpose is to function as a decentralized electronic payment method and a tipping solution, but it has no other applications or features that make it valuable. So, its worth mostly relies on speculation, community support, and hype

Shiba Inu stands out among its peers precisely because it has departed from the classic meme coin model, transitioning from a speculation-driven token to one that has various functional applications. The project has expanded its use cases with the creation of ShibaSwap, a decentralized exchange (DEX) where users can trade and stake different tokens. Shibarium, a Layer-2 blockchain, also increases SHIB’s utility by enabling faster and cheaper transactions, while also supporting the creation of dApps, DeFi, and NFT projects. All these developments boost Shiba Inu’s intrinsic value and enhance its potential as an investment

Growth potential

Launched in 2013, when the crypto industry was still very young, Dogecoin is the first and oldest meme coin in the market. Its long track record fosters trust and confidence, making traders and investors perceive it as a more legitimate asset. However, looking back at its history, we can see that Dogecoin only started gaining ground around 2021. Its success wasn’t the result of tech improvements and upgrades. DOGE’s value was artificially inflated by Elon Musk’s opportune interventions and the hype its social media posts triggered

Siba Inu’s growth, on the other hand, happened in a more organic way. The token didn’t benefit from A-listers’ endorsement, as Dogecoin did, yet it still managed to rise through the ranks and reach the spotlight. Some might argue that DOGE paved the path for its successor; it walked so other meme coins like Siba Inu could run. Yet one can’t help but wonder if Dogecoin would have gotten so far without Elon’s support

Beyond ifs and maybes, there’s also the market cap difference, which favors Shiba Inu. A token with a smaller market cap, like SHIB, is generally more likely to see rapid appreciation over a short period and thus lead to more substantial gains. That’s because even smaller investment inflows can cause its price to spike, whereas with Dogecoin, it would take larger investments to move the price needle. Obviously, this goes hand in hand with higher volatility for SHIB, but for those who are not risk-averse and are looking for higher returns, Shiba Inu might be a more suitable option

Deflationary model

It’s also important to take a look at the projects’ tokenomics. Dogecoin only has a cap on the amount of new tokens that can be mined each year, but it doesn’t have a limit on the total number of coins that can ever exist, and there are already 161.6B tokens in circulation. This creates inflationary pressure on the asset

In Shiba Inu’s case, things work differently. The meme coin has a huge but finite supply and employs a deflationary mechanism that burns a certain amount of tokens regularly to create scarcity. In the long-term, this burn rate could increase demand for the asset and potentially boost its value

The battle of the dog-themed meme coins continues, but that doesn’t mean one has to choose one over the other. What traders and investors should to focus on are their own financial needs and goals, and then they can decide if either of these two meme coins (or neither) is worth adding to their portfolios.