The cryptocurrency system is constantly changing and innovating, so it came as no surprise when meme coins started picking up speed to become increasingly important within the ecosystem. One of the reasons why they may seem like unlikely contenders for the position of the most popular asset class is because digital coins are still largely devoid of inherent value. Their prices are much lower than those of the standard digital tokens, but this might indeed be one of the reasons why investors are so keen on them, as buying and selling them doesn’t carry the same capital loss risk as in the case of the more profitable assets. 

Meme coins are powered by Internet culture, drawing inspiration from memes, something that makes them familiar and alluring to the younger demographics who are heavily invested in online subcultures and their inside jokes. The first meme coin to arrive on the market was Dogecoin, but its success led to the development and deployment of several other assets. Shiba Inu coin is one of the most noteworthy, being inspired by the same breed of dog as Doge and being introduced as a competitor for its predecessor. But what are the actual differences between the two that the investors should be aware of? 

What are meme coins? 

First, let’s explore the larger category of meme coins in order to have a more comprehensive view on the topic. Meme coins have become the most popular aspect of the crypto space, replacing NFTs, Bitcoin, and all other competitors. Speculators are particularly keen on them due to their lower prices, as they hope that the potential for an upside movement is much higher. There are also the enthusiasts that are interested in them due to their potential to connect them to larger communities of like-minded individuals who also share their hobbies. 

The fact that they’re cheaper has made meme coins much more popular than Bitcoin, Ethereum, or Solana as they are naturally much more accessible as well. The connection to meme culture and social media has helped tremendously as well, since many people are willing to participate in anything that has to do with their subjects of interest. As a result, there should be no surprise that meme coins aren’t lacking when it comes to engagement rates. 

The overview 

Dogecoin was the first of its kind and quickly established itself as a new standard and the first of a new category of cryptocurrencies. Doge is the native token of its own blockchain platform and was initially created as a joke. However, its appeal grew and it became clear that the token could be used to expand decentralized finance and contribute to the growth of the sector. Many of the early buyers purchased Doge in order to tip content creators on platforms such as Reddit or Twitter. 

Ultimately, it became a sort of gateway for newcomers who felt that blockchain tech was still far too complex and convoluted for them. The uninitiated could, therefore, learn about the decentralized ledger by interacting with Doge. A passionate community formed around the token as a result, with the aim of teaching others about cryptocurrency, having fun, and sharing memes. The Doge community guides itself by its own ethos: Do Only Good Every Day. It’s no surprise that it has attracted a large number of potential traders since everyone knows that the online spaces based solely on positivity are very few and far between. Merged mining was launched on August 6th 2014, so that Doge could share resources with LTC without compromising network performance levels. 

Shiba Inu appeared in 2020 and is an Ethereum-based token. Its creator remains anonymous, being known only under the pseudonym “Ryoshi”. Shib is fully compatible with Ethereum, including the digital wallets, decentralized applications, lending products, and non-fungible tokens. Its total supply is fixed but amounts to a staggering one quadrillion. Its community is the primary value driver, with most core functions having dog-inspired names. Staking is referred to as “burying”, and the white paper goes by “woof paper”. 

Shiba Inu has been used to fuel play-to-earn initiatives like Shiba Eternity, a digital card game, as well as a line of 10,000 non-fungible tokens known as Shiboshis. The coin also has an online newsletter known as The Shib which covers the latest discoveries in the business. The network is constantly evolving to meet the growing needs of the community as well, showing that the ecosystem is still very much active and engaged. 

Similarities and differences 

Both Doge and SHIB are deeply entwined with Internet culture and memes. Both drew inspiration from the same type of dog, with the communities having a playful spirit as a result of this imagery. The people trading these two assets are engaged in social media campaigns in order to promote and support different projects. This factor has played a significant role in their popularity and ongoing adoption. Both tokens have also been remarkably successful, earning positions at the top of the market cap ratings. This indicates that despite their relatively low prices, both coins enjoy substantial influence and prominence within the landscape. 

However, there are several differences between the two as well. The fundamental one is the way in which they approach their supply capitalization strategies. Doge was designed with a 100-billion hard supply cap but eventually removed it in order to discourage rampant speculation and hoarding. It has become unlimited, and 5 billion coins are issued every year. Shiba Inu, on the other hand, has a limited total supply of 1 quadrillion tokens. Doge uses Scrypt hashing algorithms and plans to make a transition to the proof-of-stake consensus mechanism. SHIB leverages Ethereum’s infrastructure, mixing PoA and PoS in order to enhance decentralization and scalability. 

Dogecoin features a permanent block reward of 10,000 coins per block. This amount goes to miners and validators as a reward for their assistance with validating transactions. Shiba Inu had a system like that in the past as well but has since moved away from this model and no longer adheres to the block reward mechanism. Doge has a block confirmation rate of roughly one minute, with thirty-three transactions taking place every second. SHIB is much faster, with confirmation times of about fifteen seconds at the most. However, network congestion can impact this duration. 

If you’re an investor and thinking about investing in meme coins, you must do your research in order to determine which one would be best for your portfolio. As a general rule, you should always be careful to diversify your list of holdings to ensure your assets are robust and can withstand negative market events.