Is Shiba Inu Dogecoin’s doppelganger?
Recent years have seen the rise (and demise) of many crypto tokens pertaining to the meme coin category. Most of these assets have been unmistakenly inspired by Dogecoin, the creator of this hyped-up crypto subset. One token, in particular, bears a clear resemblance to the meme coin originator, causing many to wonder if there are any notable differences between the two or if the latter is just a copy of its predecessor. The coin in question is Shiba Inu, also known as the Dogecoin killer.
With the Shiba Inu coin price experiencing solid gains since its emergence, reaching $0.000088 at one point, the asset has come to the attention of numerous traders and investors. But the obvious similarities with the meme coin leader continue to raise questions about its worth, as people are trying to determine which of the two tokens would be a better buy. Some view Shiba Inu as an alternative to Dogecoin, hence the nickname, while others dismiss it as an insignificant token undeserving of all the attention it receives.
Just another dog-themed meme coin?
A closer look at the meme coin space reveals that Shiba Inu is not the only coin that has followed in Dogecoin’s footsteps and uses the image of a dog for branding. In fact, there’s a whole genre of dog-themed meme coins available for trade. However, Shiba Inu is, without a doubt, the most successful of them all, being the second-largest meme token after Dogecoin by market capitalization and the 19th most popular crypto overall.
So, are we dealing with another Dogecoin copycat who just happened to gain more ground than the rest, or is there more to Shiba Inu than a famous canine logo? To find out the truth, we have to put the meme coins side by side and analyze their core features.
The history
Let’s start from the very beginning and see how these two meme tokens started their journey and evolved in the crypto market. Dogecoin (DOGE) was the first meme coin ever created, being launched in 2013 by Billy Markus and Jackson Palmer. Its inventors simply wanted to make fun of the hype surrounding Bitcoin and the crypto industry at the time by creating a coin based on the viral Doge meme, which featured a Japanese Shiba Inu named Kabosu. DOGE was initially used as a tipping method on various social networks and provided an accessible entry point to crypto for those who were new to crypto.
Dogecoin’s satirical take on crypto turned out to be quite a wise, albeit unintentional, move. Its humorous and lighthearted character appealed to many crypto enthusiasts, who ended up building a loyal community around the asset. These passionate supporters started promoting a series of core values and principles related to Dogecoin, such as simplicity, user-friendliness, generosity, crypto literacy, and having fun, which are encapsulated in the “do only good every day” (DOGE) ethos.
Endorsements from influential figures like Elon Musk strengthened Dogecoin’s standing in the market and drew attention to its potential as a financial instrument and investment opportunity despite its lack of solid fundamentals to back up its value.
Shiba Inu (SHIB), on the other hand, entered the market much later, in 2020, when the meme coin phenomenon was in full swing, so it has a considerably shorter history than its forerunner and also a smoother trajectory to the top. Its creators remain anonymous, being known by the fictitious name Ryoshi.
SHIB capitalized on the meme coin craze and the dog meme imagery popularized by Dogecoin to capture attention and make its way into the meme coin market. Just like Dogecoin, Shiba Inu relied on the appeal of its namesake mascot and its community’s support to gain momentum and value.
If Dogecoin benefited from Elon Musk’s support, interest in SHIB was driven by the Ethereum co-founder Vitalik Buterin who donated over 50 trillion SHIB tokens to a charity in 2021. The asset experienced major gains during the meme coin boom and it has remained ever since a notable payer in the crypto market.
The technology
From a technological perspective, there are notable differences between Dogecoin and Shiba Inu. Dogecoin was created by forking Litecoin (LTC) and operates on its own blockchain. The project uses a Proof of Work (PoW) consensus mechanism, which is often criticized for being energy-intensive and, therefore, harmful to the environment.
By comparison, Shiba Inu was created as an ERC-20 token on the Ethereum network. This means it shares the functionalities and leverages the advantages that the Ethereum ecosystem provides, such as strength, security, and decentralization. After Ethereum’s overhaul, known as the Merge in 2022, the asset started utilizing a Proof of Stake (PoS) system, where miners are replaced by validators, and the energy consumption is greatly reduced.
The tokenomics
Dogecoin and Shiba Inu have very distinct tokenomics. Dogecoin doesn’t have a supply cap and is programmed to release approximately 5 billion new DOGE coins into circulation annually. Shiba Inu was designed with an enormous initial supply of 1 quadrillion SHIB tokens, out of which 410 trillion were burned to enhance scarcity.
The main value driver for both coins is represented by their communities. However, while Dogecoin boasts a large and passionate group of supporters that formed organically around the asset, Shiba Inu embraces a more organized approach to community engagement, being governed by the Doggy decentralized autonomous organization (DAO).
As for use cases, Dogecoin is mainly used for tipping, microtransactions, and payments. Shiba Inu offers a decentralized exchange (ShibaSwap), where the token can be used for trading purposes. It also boasts NFT functionality and aims to expand its range of applications across the metaverse and other sectors.
The performance
In terms of network capabilities, Dogecoin can process about 33 transactions per second (TPS), while Shiba Inu is much faster, with a throughput of up to 200 TPS, owing to Ethereum’s superior processing speed. Shiba Inu is also clearly focused on innovation and meeting users’ evolving needs. Shibarium, its Layer-2 blockchain solution, enhances Shiba Inu’s functionality by ensuring faster and cheaper transactions.
Based on the latest data, Dogecoin ranks 8th in the crypto industry by market cap, whereas Shiba Inu occupies the 19th position.
As you can see, there are many key differences that distinguish Shiba Inu from Dogecoin, so the doppelganger label clearly doesn’t apply in this case.
