Dogecoin vs Shiba Inu: Which Under $1 Cryptocurrency to Buy?
In the rapidly evolving world of cryptocurrency, two popular meme coins, Dogecoin (DOGE) and Shiba Inu (SHIB), often come under scrutiny. This article aims to analyze the potential of each coin, particularly in the context of their respective price points and market dynamics. Investors are frequently drawn to these coins due to their low price, but a deeper understanding of their mechanics is crucial.
Price Overview and Market Capitalization
As of now, Dogecoin trades at approximately $0.18, while Shiba Inu is priced at $0.00001. Although these numbers appear attractive, they mask significant differences in supply and market capitalization.
- Dogecoin: Circulating supply is around 151.6 billion coins.
- Shiba Inu: Circulating supply is a staggering 589.2 trillion coins.
If Dogecoin were to reach $1, it would necessitate a market capitalization of $151.6 billion. In contrast, a $1 price point for Shiba Inu would imply an astronomical market cap in the multi-hundred-trillion range, effectively making it unreachable.
Understanding Tokenomics
The differences in tokenomics further complicate the investment potential of these coins. Dogecoin has a fixed issuance of 5 billion new coins annually. This means the rate of holder dilution decreases as the supply grows, impacting its value over time.
On the other hand, Shiba Inu’s strategy revolved around its Layer-2 network, Shibarium. This system was intended to burn a significant percentage of the tokens through transaction fees. However, the actual burn rate has proven minimal, and network activity has not significantly increased, limiting its appeal to potential investors.
Investment Viability
While both coins are popular within the crypto community, they lack a robust investment thesis. Investors should be cautious, as neither coin inherently supports value creation.
ETF Availability
Another important aspect to consider is the availability of exchange-traded funds (ETFs). As of mid-September, Dogecoin can be accessed through the REX-Osprey DOGE ETF, enabling traditional investors to buy into it easily. In contrast, Shiba Inu has no dedicated ETF, limiting its exposure to traditional investment channels.
Conclusion
When evaluating which cryptocurrency to invest in between Dogecoin and Shiba Inu, Dogecoin stands out as the more favorable option. It has greater recognition and more accessible investment pathways, such as ETFs. However, it is essential for investors to assess their strategies carefully, keeping in mind that these coins do not currently present strong grounds for long-term investment.
