The month of October has been relatively quiet for a majority of the crypto assets, except two. While the addition of Bitcoin does not come as a surprise, very few predicted the massive price growth of Shiba Inu once again. Twitter itself didn’t take it too well, especially since long-time investors love nothing more than to target meme coins. Shiba Inu had been facing a disastrous few months post-May, which has seen the coin trading sideways for the majority of the last 5 months.
But, on the 7th of October, Shiba Inu hit a market value of $12 billion and is officially the 11th largest cryptocurrency, just behind Dogecoin. While Doge currently has a market valuation of just above $29 billion, the rise of Shiba will surely make for a worrisome Q4 for Doge holders. Let’s take a look at all the events that have transpired, and which coin seems to be the better investment opportunity.
Shiba surges to Number 11
While you may think that Bitcoin’s 35% is a massive positive for the month of October, Shiba has silently been climbing up and has gained more than 350% in October itself. What makes this accolade ironic is that Shiba went from a meme spin-off to an existing meme coin, and is now one of the best performing cryptocurrencies of the year.
The first week of Q4 saw Shiba rise by 300%, which pushed it into the top 20 cryptocurrencies in terms of market cap. This itself was a huge feat for Shiba, as it faced a massive correction of about 40% in the days to follow. But just when we thought the coin was going to slip off our radars once again, Shiba collected another 42% in the 2nd week of October, totaling a 350% price jump in under 2 weeks. As it currently stands, Shiba Inu is trading at $0.000028.
This price jump allowed the coin to achieve its $12 billion valuation, which has placed it at number 11, according to CoinMarketcap. As the market observers love to do, this has started a speculatory debate of Shiba Inu possibly overtaking Dogecoin in the coming months. Nicknamed the ‘DogeKiller’ as a joke back in August 2020, the meme coin which was created as a spin-off to Doge is closer than it ever was before. While Bitcoin is making waves after it crossed the market cap of Google, Microsoft, and Facebook, Doge is making new waves of its own.
The meme-coin is currently above popular cryptocurrencies like Polygon, Stellar, and Axie Infinity, despite the strong fundamentals of all of these coins.
Many investors believe the rise in Shiba’s value can be credited to Elon Musk once again. Musk, who is popular on crypto Twitter as the man who single-handedly changes supply and demand with 1 tweet has hit again. But this time, it’s in support of Shiba Inu. He took to Twitter to post a picture of a new Shiba Inu dog that he recently bought. Of course, watchers were quick to see a huge price demand in the crypto, even if it had nothing to do with the cryptocurrency itself.
But not all the participants in the market credit Elon Musk for this meteoric rise. A researcher from 21Shares who goes by the name of Elizer Ndinga shares a different viewpoint.
“There’s no evidence that the tweet explicitly showed support of the Shib token the same way he did in the past posting memes for dogecoin”, said Ndinga.
This is in reference to Musk’s previous tweets which were linked to a rise in Dogecoin prices in early 2021. The main difference was also that the Tesla founder’s tweets led to a short-term price change, whereas Shiba has been on a two-week surging spree.
But, why are people questioning the possibility of Shiba Inu flipping Dogecoin? The market valuation of the latter is still more than twice of Shiba. So surely the coin is a long-time away from being overtaken in market valuation right? Well, past performance indicators have a different story to tell.
Shiba’s rapid climb to the $12 billion valuation
While Dogecoin has a market valuation of $29 billion, Shiba Inu has taken just 14 months to reach the $12 billion market valuation. In case you aren’t aware of Shiba Inu’s price history, it’s because it does not really have a very long one. The coin was invented only in August of 2020. While the price-performance was virtually non-existent in 2020, thanks to a bullish run in April and now again in October, the coin is worth $12 billion in only 14 months.
Dogecoin on the other hand has been moving far slower. It took Dogecoin nearly six times as long to achieve the same valuation – 88 months to be precise. Both the coins are arguably as volatile as each other, but could Shiba quickly close the $17 billion gap that exists between itself and its rival? Well, you can never predict the future of cryptocurrencies. Especially not when they are meme coins. While Shiba is gifting its investors incredible highs in October, it is very possible that we will face a huge price drop or a continuation of their bullish run. It’s important to safely invest what you can afford to lose before you go reaching into your 401Ks without prior market research.
Shiba vs Doge : Which meme coin should you invest in?
Despite Shiba Inu being dubbed the ‘Dogecoin killer’, the two coins are more similar than you may realize. While neither provides as much real-world value as Bitcoin or Ethereum, they do have their pros and cons. Both the coins intend to serve as a P2P network without any central authority.
But, a key difference that makes Shiba Inu a more ideal coin is that it is an ERC-20 token. This means that the Shiba coin runs on the Ethereum blockchain, and has access to all the popular DeFi platforms and apps that developers have been launching. This is thanks to Ethereum’s deployment of smart contracts, which allows investors to create their own DeFi apps.
As price history stands, both coins have delivered exponential returns. If you invested in Dogecoin in early January of this year, the return would be over 9000%. On the other hand, in just 14 months of existence, Shiba Inu went from $0.00000001 to around $0.00003880 per token. This goes to show the strong returns these 2 coins have given investors.
One big factor, which does not affect as many coins as these two, is also social media. Shiba Inu has always stated that it’s a coin for the community, and doge approaches a similar method. No wonder tweets from billionaires alone lead to price fluctuations. So, before you pick one over the other, remember that any cryptocurrency can go up and down.
At this point, it’s on you to take a leap of faith and hopefully not throw in an amount that you may not want to lose. Both coins have made many people millionaires, but they can make you broke as well.
The race between the two coins is at a peak right now, so it will be very interesting to see the price change at the end of 2022.