The surprising rise of Shiba Inu has energized investors since October. In the past year alone, the price of Shiba Inu has increased by 60,000,000%, reaching many record highs. But the most notable blow came last month when Shiba Inu made it into the top 10 for the first time. In the end, the cryptocurrency managed to push back the native memecoin, Dogecoin, and briefly took over its eighth position. Although it didn’t last long, the short span of time changed SHIB’s perspective and gave the competitor a hectic time. On the other hand, Dogecoin did not surrender to Shiba Inu as it fought to regain its position. Yes, Dogecoin’s loyal investors have tweaked their game and added more value to the meme coin, allowing DOGE to maintain its value. While the memecoins were in play, bitcoin maintained a moderate value, although it hit an all-time high not long before. This pushed investors to a point where they started to think whether Shiba Inu and Dogecoin have the potential to outperform bitcoin in 2020 or maybe beyond.
The cryptocurrency market is already volatile and unstable. To fuel the fire, memecoins are emerging as the riskiest and mind-boggling investment. In general, each cryptocurrency making its debut in the virtual ecosystem has its own motive. Bitcoin, for example, is valued as a top form of payment and investment model, while ethereum is used for day-to-day transactions. But the scenario is completely different for meme coins. Shiba Inu and Dogecoin are collective joke currencies that serve no purpose.
In recent years, meme-based assets, including meme stocks, NFTs, and other collectibles have gained popularity. Along with them, memecoins became a popular form of investing. While we are not very sure where Shiba Inu and Dogecoin can take their investors, it has the potential to do well in the market in the near term. Therefore, we are exploring the possibilities of Shiba Inu and Dogecoin taking over Bitcoin in 2022 or beyond.
The Evolution of Dogecoin and Its Recent Position
Dogecoin grew out of online Shiba Inu puppy memes and jokes that went viral in 2013. It started as a joke about the speculative frenzy surrounding bitcoin. After keeping a low profile for a very long time, DOGE only gained prominence in 2020 when investors started a Sub-Reddit move. It eventually led to the adoption of Dogecoin in GameStop and AMC Entertainment. After this, DOGE entered the mainstream cryptocurrency list and became a serious investment model. The memecoin has a large group of honest investors who are willing to do everything for the digital token. They upped their game when Shiba Inu briefly took over Dogecoin last month. While SHIB is still in the early stages of its evolution, Dogecoin has come a long way to be where it is today.
Will Dogecoin Take Over Bitcoin Soon?
According to experts, Dogecoin has no way of catching up to bitcoin with its current market cap and value. DOGE has neither institutional investors nor inflation to drive its price up. Currently, bitcoin has a market cap of US$1.08 trillion compared to Dogecoin, which is approximately US$28 billion. Experts predict that Dogecoin’s market cap will never reach $1 trillion as its price is well below $1. A few things that make sure that Dogecoin never outperforms Bitocin are listed as follows.
- The supply limit is very important for any cryptocurrency. Currently, there are more than 130 billion DOGE in circulation, while Bitcoin has a supply limit that resists the digital token from going beyond 21 million.
- Due to the inflation model Dogecoin is built with, it is not considered a store of value. While people are buying bitcoin because of the deflation.
- At the time of adding 1 block to Bitcoin, Dogecoin can add 10 blogs. This, of course, adds more DOGE to the circulation, decreasing its value.
The sudden growth of Shiba Inu
Shiba Inu was created in 2020 by an anonymous person or people named ‘Ryoshi’ after Dogecoin hit the mainstream. Since its inception, SHIB has gained 12,505,887.6%. But the recent Shiba Inu rally was a complete move by the honest investors. A petition on Change.org demanding the Robinhood platform add SHIB to its portfolio has gone viral online. Although the petition received approximately 300,000 signatures, its success was reflected in SHIB’s award. Finally, Shiba Inu entered the mainstream crypto list and pushed Dogecoin to become the best meme coin. SHIB’s announcement about NFTs and investor fear of missing out (FOMO) also contributed to the price rally.
While Shiba Inu has managed to mark so many milestones in a short period of time, the potential to overtake bitcoin is close to zero. But Ethereum flippening Bitcoin could have an impact on SHIB as it is the ETHER of memecoins.
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