After the recent value, investors are questioning if Shiba Inu and Dogecoin can overtake bitcoin in future
The surprising rise of Shiba Inu has piqued the investors since October. In the past year alone, Shiba Inu’s price has soared up by 60,000,000%, hitting many record highs. But the most remarkable blow came last month when Shiba Inu made it into the top 10 list for the first time. Eventually, the cryptocurrency managed to push back the native memecoin, Dogecoin, and took over its eighth position briefly. Although it didn’t last long, the short span changed the perspective of SHIB and gave a hectic time to its competitor. On the other hand, Dogecoin didn’t surrender to Shiba Inu as it fought to take back its position. Yes, Dogecoin’s loyal investors geared up their game and added more value to the meme coin, which helped DOGE to retain its value. While the memecoins were on the play, bitcoin was maintaining a moderate value although it reached an all-time high not long before. This pushed investors to a point where they started thinking if Shiba Inu and Dogecoin have the potential to outperform bitcoin in 2020 or maybe beyond.
The cryptocurrency market is already volatile and unstable. To add fuel to the fire, memecoins emerge as the riskiest and perplexing investment. Generally, every cryptocurrency that makes its debut in the virtual ecosystem has its own motive. For example, bitcoin is valued as a top payment form and investment model while ethereum is used for everyday transactions. But the scenario is completely different for meme coins. Shiba Inu and Dogecoin are collective joke currencies that don’t have a purpose.
Over the past few years, meme-based assets including meme stocks, NFTs, and other collectibles have gained traction. Along with them, memecoins became a popular form of investment. Although we are not very sure about where Shiba Inu and Dogecoin might take their investors, it has the potential to do well in the market in the short-terms. Therefore, we explore the possibilities of Shiba Inu and Dogecoin taking over Bitcoin in 2022 or beyond.
The Evolution of Dogecoin and its Recent Stance
Dogecoin emerged out of online memes and jokes of Shiba Inu puppy that went viral in 2013. It started as a joke on the speculative frenzy surrounding bitcoin. After maintaining a low profile for a very long time, DOGE rose to prominence only in 2020 when investors started a Sub-Reddit movement. It eventually led to the acceptance of Dogecoin in GameStop and AMC Entertainment. Following this, DOGE entered the mainstream cryptocurrency list and became a serious investment model. The memecoin has a vast group of honest investors who are willing to do anything for the digital token. They geared up their game when Shiba Inu briefly took over Dogecoin last month. While SHIB is still at the early stage of its evolution, Dogecoin came a long way to stand where it is today.
Will Dogecoin Take Over Bitcoin Any Time Soon?
According to experts, Dogecoin has no way to overtake bitcoin with its current market capitalization and value. DOGE has neither institutional investors nor inflation to trigger its price. Currently, bitcoin has a market capitalization of US$1.08 trillion compared to Dogecoin, which is around US$28 billion. Experts predict that Dogecoin’s market capitalization will never reach US$1 trillion as its price is far below the US$1 mark. A few things that make Dogecoin never outperform Bitocin are listed as follows.
The supply cap is very important for every cryptocurrency. Currently, there is over 130 billion DOGE in circulation while Bitcoin has a supply cap that resists the digital token to go beyond 21 million.
Because of the inflationary model, Dogecoin is constructed with, it is not considered as a store of value. Whereas, People buy bitcoin for its deflationary.
At the time of adding 1 block to Bitcoin, Dogecoin can add 10 blogs. This naturally adds more DOGE to circulation, pulling its value down.
Shiba Inu’s Sudden Growth
Shiba Inu was created by an anonymous person or people named ‘Ryoshi’ in 2020 after Dogecoin hit mainstream. Since its inception, SHIB has gained 12,505,887.6%. But the recent Shiba Inu rally was a complete move by its honest investors. A petition at Change.org demanding the Robinhood platform to add SHIB to its portfolio has gone viral online. Although the petition got around 300,000 signatures, its success was reflected in SHIB’s price. Eventually, Shiba Inu entered the mainstream crypto list and pushed Dogecoin to become the top meme coin. SHIB’s announcement on NFTs and the fear of missing out (FOMO) from investors also contributed to its price rally.
Although Shiba Inu managed to mark so many milestones in a brief time, its potential to overtake bitcoin is nearly zero. But Ethereum flippening Bitcoin could have an impact on SHIB since it is the ETHER of memecoins.