Earlier this year, both Shiba Inu and Dogecoin prices exploded. SHIB climbed by more than 50 million percent, while DOGE rose by more than 3,300 percent.
A few experts analyzed their market performance and explained which crypto market is the better investment.
Undeniably, Shiba Inu and Dogecoin share a lot of similarities. Both function solely as cryptocurrencies but are not integrated to a blockchain service network. Both are also speculative investments that started as spoofs on the crypto trend, which showcased fantastic post gains because of meme energy and fan hype.
To emphasize, these two tokens both started as an internet joke. However, for some traders, these were low-risk investments that immediately turned them to billionaires. Others are now interested in following suit.
Experts from The Motley Fool dug deeper into the cryptocurrency data and emphasized each market's strengths and weaknesses.
Shiba Inu Price: Should You Invest in SHIB?
Keith Noonan pointed out that Shiba Inu is an ERC-20 token built on the Ethereum blockchain. Unlike Dogecoin, which was modeled after Bitcoin, Shiba Inu has the potential to feature smart contract functionality in the future.
Shiba Inu is also actively deflationary, where tokens are being regularly burned out of circulation. As a market strategy, this should ideally make Shiba Inu coins a lot more valuable than Doge.
Reportedly, Shiba Inu is generating more interest in the public. Although it has yet to be added to Robinhood Market's trading platform, it might grow into a potential metaverse token.
Overall, Shiba Inu features better potential and functionality than Dogecoin, which implies more room for explosive growth. However, it should also be noted that Shiba Inu experienced a price crash earlier this week. Short-term investors should be weary of the current trades.
Dogecoin Price: Should You Invest in DOGE?
Although Shiba Inu showcased a lot of potential, Dogecoin also has its fair share of market strength. One of its biggest advantages is definitely the support it continues to receive from iconic investors. Bram Berkowitz highlighted that DOGE is backed by Elon Musk, the genius behind PayPal, SpaceX and other companies.
Musk notably showed genuine interest in improving the Dogecoin network with his tweets on DOGE trade and upgrades. Due to Musk's active support, the DOGE price boosts happen often in the market.
It should also be noted that 65 percent of the Dogecoin tokens are held by approximately 98 digital wallets, and five of these control 40 percent of those tokens. On the flip side, 53 percent of the Shiba Inu tokens are held by just four crypto wallets. This implies that Shiba Inu has a lot more volatile market than Dogecoin.
Ultimately, both Shiba Inu and Dogecoin are very risky investments in the cryptocurrency industry. Regardless of the choice, investors should be prepared for market volatility and investment loses when trading on these meme coins.
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