Better Buy: Dogecoin or Shiba Inu? The Answer Might Surprise You.

by

As a crypto enthusiast myself, I can’t help but marvel at the staggering growth we’re witnessing! Just last week, the incredible platform CoinGecko hit an unprecedented milestone: the combined value of nearly 17,000 different digital currencies soared past $4 trillion for the first time ever. Now, let me break that down for you – the mighty Bitcoin alone makes up a whopping $2.4 trillion of that grand total, and it’s consistently breaking new ground. Even some of the wildest meme tokens are jumping on the bandwagon of this recent rally! It’s an exhilarating time to be part of the crypto community!

During the last month, Dogecoin (DOGE) and Shiba Inu (SHIB) have experienced a significant increase, with DOGE rising by 73% and SHIB by 37%. The supportive stance towards cryptocurrency by former U.S. President Donald Trump is gaining momentum, sparking interest and demand for coins and tokens across the industry.

Last week, the Genius Act, establishing a fresh regulatory structure for digital currencies known as stablecoins, was approved by Congress. Additionally, the Clarity Act is being proposed, which seeks to transfer crypto regulation from the Securities and Exchange Commission to the Commodity Futures Trading Commission if it successfully garners sufficient support in the Senate.

Could Dogecoin and Shiba Inu capitalize on the hype surrounding Washington and sustain their growth in the long run? Let’s explore which one could be a better choice for long-term investment. Keep reading for an intriguing perspective.

The case for Dogecoin

Back in 2013, my buddies Billy Markus and Jackson Palmer had this hilarious idea: the world of cryptocurrency was getting a bit too formal for their taste. Infected by the Doge meme craze sweeping the web – you know, those adorable Shiba Inu images – they decided to shake things up. And so, in a burst of laughter and camaraderie, we birthed Dogecoin!

They said it was all in good fun (and they weren’t kidding), but who would have thought that this joke coin would one day reach a market cap of approximately $90 billion in 2021? Go figure! Even the most serious investors couldn’t help but chuckle at that.

The coin’s rise was a collective achievement, yet one individual exerted significantly more impact on its behavior than any other: Elon Musk, CEO of Tesla. He began publicly endorsing the meme token in 2019 and continued to boost it through entertaining posts on various social media platforms over subsequent years.

On the 8th of May, 2021, Musk took part in a comedic skit related to Dogecoin during an episode of Saturday Night Live. That night, the token reached an unprecedented peak of $0.73. However, when investors understood that Musk had no definite strategy to generate real value, they decided to withdraw their investments.

By the middle of 2022, Dogecoin had suffered a significant decline, losing over 90% of its worth, and it showed little activity throughout 2023 and most of 2024. However, all that changed when Donald Trump was elected president in November.

Loading widget...

Elon Musk backed Trump during his presidential campaign and was subsequently appointed to lead an external organization known as the Department of Government Efficiency (DOGE), whose mission is to minimize unnecessary spending in order to tackle the national debt. Coincidentally, DOGE is also the abbreviation for Dogecoin, causing a significant surge in its value, with Dogecoin reaching a 52-week high of $0.47 due to speculation that Musk might have new ideas regarding his preferred cryptocurrency.

The impetus waned as it was evident that Dogecoin would hold no significance within the organization. However, despite a 73% increase over the last month, the coin is now being traded at only $0.28.

If the Clarity Act results in a more welcoming regulatory landscape for cryptocurrencies, as anticipated, it could open up possibilities for novel applications of meme tokens such as Dogecoin. Any advancement promoting lasting adoption could potentially propel it upward, though it remains uncertain if this will indeed materialize.

The case for Shiba Inu

In simple terms, Shiba Inu, a well-known meme token, accomplished something extraordinary in the financial world during 2021. Unlike any other asset, be it traditional or cryptocurrency, Shiba Inu managed to deliver an annual return of an astounding 45,278,000%. This means that if someone invested a mere $3 at the right moment in 2021, they would have ended up with over $1 million by year’s end.

A mysterious figure, known only as Ryoshi, introduced Shiba Inu towards the end of 2020, aiming to capitalize on the same surge that was propelling Dogecoin upward. This newcomer was even nicknamed the “Dogecoin challenger” by investors who hoped it might surpass its more established counterpart in terms of popularity.

Shiba Inu didn’t have a prominent figure similar to Elon Musk supporting it, yet its swiftly increasing worth triggered a surge of major trading platforms such as Coinbase and Binance to list it, making it available to numerous new investors.

Loading widget...

After experiencing a hype similar to Dogecoin, Shiba Inu saw its value drop by over 90% from its peak in 2022. Despite this, it hasn’t found a practical purpose in the real world yet, which has made attempts at recovery unsuccessful. Its extreme volatility makes it unsuitable for businesses to accept as payment, and given that it’s currently trading 83% below its all-time high, it’s not an effective means of storing value either.

Additionally, Shiba Inu experiences a supply issue due to having an extensive amount (589.2 trillion) circulating tokens, which translates into each token being worth just $0.000015. If its value were to reach $1 per token, it would create a market capitalization of an astounding $589.2 trillion, making it the most valuable asset globally by a considerable margin.

Imagining the scenario, it’s mind-blowing to ponder that a single Shiba Inu at its peak value could outstrip the combined economic production of the United States by nearly 19 times! Last year, our country’s GDP stood tall at an impressive $29.7 trillion, and if Shiba Inu were to reach such heights, it would redefine our understanding of value!

It’s unclear what event might ignite another significant surge in Shiba Inu similar to past rallies, yet, just as Dogecoin, it may gain from any regulatory changes that facilitate novel applications.

The surprising verdict

Shiba Inu’s circulating supply is gradually decreasing due to some owners choosing to destroy their coins, while Dogecoin has a theoretically unlimited supply – a fixed number of new tokens are produced annually, but this continues indefinitely without an end date, which could lead to the dilution of existing investors’ holdings for as long as mining continues.

For that reason, if I had to invest in one of these meme tokens, I would probably pick Shiba Inu.

Instead, I’d advise investors to steer clear of both Dogecoin and Shiba Inu. The fact that neither has regained their peak values from 2021 suggests the risks associated with investing in speculative assets. Since there are no solid fundamentals backing the value of either Dogecoin or Shiba Inu, a recovery seems unlikely, and they may even decline further over the long term. If you’re looking for cryptocurrency exposure, it might be wiser to opt for an established player like Bitcoin instead.

Read More

2025-07-24 11:19