Shiba Inu (CRYPTO: gray hair) And Dogecoin (CRYPTO: DOGE) Both were riding the cryptocurrency popular wave with a dog as a mascot. These popular meme symbols have skyrocketed in the past year – and have taken a niche among the biggest cryptocurrencies.
Shiba Inu beat its older competitor when it comes to annual earnings. He soared 45,000,000%. Dogecoin “only” rose 2900%. But Shiba Inu lags behind when it comes to market value. She is number 13 in the worldy The largest cryptocurrency while Dogecoin is 12y Larger. Dogecoin also outperforms Shiba Inu in terms of the value of individual tokens. It is worth about 15 cents while the Shiba Inu trades at a fraction of a cent. Given the popularity of Shiba Inu and its strong community support, could it rise above the price of Dogecoin this year? Can Dogecoin Exceed Market Cap? What about from a purely percentage increase perspective? Let’s look for some clues.
Community building experience
First, a little background on the Shiba Inu. A founder known only as “Ryoshi” launched the Shiba Inu program in August 2020. The Shiba Inu whitepaper describes the cryptocurrency as “an experiment in building a decentralized spontaneous community.” And society – known as the Shep Army – is indeed the driving factor behind the success of the Shiba Inu.
So, what exactly is a Shiba Inu? It is a code based on Ethereum blockchain. Shiba Inu is not a blockchain per se and cannot host smart contracts. Therefore, users cannot go to Shiba Inu for decentralized applications that allow them to buy insurance or manage their investments, for example. Alternatively, investors can buy Shiba Inu and share their holdings for passive income – or use their tokens as a payment method at specific merchants.
Unlike Shiba Inu, Dogecoin is a currency And Blockchain. But like the Shiba Inu, the uses of the real Dogecoin world are limited to betting and paying. So, it seems fair to compare the two – and consider whether Shiba Inu has what it takes to leapfrog its competition.
Our answer key relates to supplying tokens. Dogecoin has a generally unlimited supply. This limits the gains. But at the moment, about 132 billion tokens are in circulation. This is significantly less than the 549 trillion shiba inu in circulation.
Market value and price of a single currency
Now, let’s do some math. Today, the price of Shiba Inu is around 0.00002949. If it doubles to 0.00005898, we are still well below Dogecoin price today. But it raises Shiba Inu’s market value to more than $32 billion. As of now, that would put Shiba Inu ahead of Dogecoin in terms of market capitalization. It will make it the ninth largest cryptocurrency by market cap after that ripple. From a math point of view, it is possible that Shiba Inu will outperform Dogecoin when it comes to market cap.
In terms of the actual price of each coin, it seems almost impossible for Shiba Inu to be able to beat Dogecoin. Given the supply of Shiba Inu coins, a price of 15 cents would give the cryptocurrency a market value of $82 trillion. In comparison, the entire crypto market is worth around $3 trillion.
When it comes to overall percentage winnings, it may be easier for Shiba Inu to beat Dogecoin than the other way around. This is simply because it is easier for assets of lower value to double or triple than for those starting at a higher price.
Therefore, Shiba Inu can outperform Dogecoin when it comes to gain percentage or market cap. Does this mean that you should invest in this popular crypto operator? No, there are several reasons why I should avoid Shiba Inu. The good news is: the options are many. There are plenty of other cryptocurrency opportunities that look more promising for 2022.
This article represents the opinion of the author, who may disagree with the “official” recommendation position of the Motley Fool Premium Consulting Service. We are diverse! Asking about an investment thesis — even if it’s our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.