Today, Shiba Inu and Dogecoin continue their fight to show the leader among pupcoins. Since they are now among the top ten digital currencies globally, they can now be compared with crypto leaders such as Cardano, Ripple, and Polkadot.
Investors Must Choose A Side
Investors are forced to decide between them since both of them are on a bullish run today. But many assume that the two are the same, which isn’t true. They only share the similarity that they are both dog-based cryptocurrency.
The main difference between them lies in their structure. Dogecoin is a coin whose network has a personalized blockchain. Thus, transactions can be native to the chain. The receipt of a DOGE transaction can be logged in DOGE. Conversely, SHIB is a token built on Ethereum.
It is yet to have its dedicated chain. Hence, any transaction on it is logged in using Ethereum. An investor may not read much meaning to this difference unless he understands the benefits of owning a token and a coin. For instance, Dogecoins can be mined, built on the proof-of-work algorithm to achieve this purpose.
On the other hand, SHIB cannot be mined since it neither has a dedicated blockchain or a consensus mechanism. However, Shiba developers have introduced a decentralized exchange (known as the Shibaswap exchange) that allows any Shiba holder to earn token rewards for staking their holdings in liquidity pools.
Total Supply In Circulation And Mining
Even though DOGE mining requires considerable renewable energy, which makes it less appealing than SHIB, the methods of earning passive income are similar. Yet, DOGE developers have revealed plans to switch from the current proof-of-work consensus to a proof-of-stake very soon. Supply is one other unique difference between them. DOGE’s supply is less than 135B which is comparatively lower than SHIB tokens of one quadrillion.
Even though DOGE’s supply is on the rise, that of SHIB is on the decline. The total DOGE in circulation increases with every newly minted Dogecoin. This number keeps rising even though the network is automated to reduce the amount of mineable Dogecoin every year gradually.
However, SHIB’s supply shrunk by a tremendous amount recently when Ethereum CEO, Vitalik Buterin, burned more than 50% of the 500 trillion SHIB he received as a gift from Shiba Inu developers. As this supply shrank, the demand became more huge. Price is one last difference between them. DOGE currently trades at almost 30 cents (according to Coinranking data), while SHIB now exchanges hands at $0.000079.
For obvious reasons, you will get more SHIB than DOGE with the same amount. But both virtual assets are having an excellent growth year. Thus, whether it’s SHIB or DOGE, you can expect to make some decent profits trading either of them.
Both have also benefited from electric car billionaire Elon Musk’s social influence. Recently, Elon Musk tweeted about receiving one DOGE for sending two Dogecoin. DOGE’s price spiked within a few hours of that tweet.