on the crypto
Shiba Inu (CRYPTO: SHIB) and Dogecoin (CRYPTO: DOGE) have both rode the popularity wave of cryptocurrencies with a dog as their mascot. These popular meme tokens skyrocketed last year - and have taken their place among the biggest cryptocurrencies.
Shiba Inu has beaten its older rival when it comes to annual earnings. It was up by an impressive 45.000.000%. Dogecoin rose "only" by 2.900%. But Shiba Inu is lagging behind when it comes to market value. It is the 13th largest cryptocurrency in the world, while Dogecoin is the 12th largest. Dogecoin also beats Shiba Inu for the value of individual tokens. It is worth around 15 cents, while Shiba Inu is exchanged for a fraction of a cent. Considering Shiba Inu's popularity and strong community support, could it exceed Dogecoin's price this year? Could it exceed Dogecoin's market value? And from the point of view of the pure percentage increase? Let's look for some clues.
A community building experiment
First, some background on Shiba Inu. A founder known only as "Ryoshi" launched Shiba Inu in August 2020. The Shiba Inu whitepaper calls cryptocurrency "a decentralized spontaneous community building experiment". And the community - known as the Shib Army - is truly the driving factor behind Shiba Inu's success.
So what exactly is Shiba Inu?
It is a token built on the Ethereum blockchain. Shiba Inu is not a blockchain itself and cannot host smart contracts. Hence, users cannot go to Shiba Inu for decentralized applications that allow them to purchase insurance or manage their investments, for example. Instead, investors can buy Shiba Inu and stake their holdings for passive income - or use their tokens as a payment method at some merchants. Or, trade via Bitcoin system.
Unlike Shiba Inu, Dogecoin is a currency and a blockchain. But like Shiba Inu, Dogecoin's real-world uses are limited to stakes and payouts. So, it seems fair to compare the two - and consider whether Shiba Inu has what it takes to jump ahead of its rival.
Market value and price per coin
Now, let's do some math. Today, Shiba Inu is priced around 0,00002949. If it doubles to 0,00005898, we are still at a price that is much lower than today's Dogecoin price. But it brings Shiba Inu to a market value of over $ 32 billion. At the moment, this would put Shiba Inu ahead of Dogecoin in terms of market value. And it would make it the ninth largest cryptocurrency by market value after Ripple. From a mathematical point of view, it's possible the Shiba Inu could beat Dogecoin when it comes to market value.
As for the actual price per coin, it seems nearly impossible that the Shiba Inu can beat Dogecoin. Considering Shiba Inu's coin offering, a price of 15 cents would give the cryptocurrency a market value of $ 82 trillion. By comparison, the entire cryptocurrency market is worth around $ 3 trillion.
When it comes to overall percentage earnings, it may be easier for Shiba Inu to beat Dogecoin than the other way around. This is simply because it is easier for goods with a lower value to double or triple than for those starting with a higher price.