The CNBC article considered the utility and on-chain data about Shiba Inu and Dogecoin.
A CNBC article explored the possibility of Shiba Inu (SHIB) surpassing Dogecoin (DOGE) in market capitalization next year. The article considered the utility and on-chain data about both assets.
The report rightly pointed out that DOGE is ahead of SHIB in market capitalization with over $6 billion. Dogecoin currently boasts a market cap of $12.59 billion, while Shiba Inu’s market cap currently stands at $6.42 billion. At the current figures, Shiba Inu would need an additional $6.17 billion in market cap to overtake Dogecoin.
Utility: Shiba Inu vs Dogecoin
One area taken into account is utility. Utility refers to the usefulness of an asset in addressing a need beyond just its market value. The report emphasized the fact that Dogecoin’s most important utility is in its usage as a means of payment.
Doge has garnered significant interest from large corporations and businesses such as Tesla, Newegg, airBaltic, and Twitch, among others. These companies have incorporated direct payments in Dogecoin, helping to bolster its utility.
In contrast, Shiba Inu aims to boost its utility through various means, such as the decentralized exchange ShibaSwap, the Shiba Inu Metaverse, games like Shiba Eternity, and the highly anticipated Shibarium layer-2 solution.
Despite not being as widely accepted as DOGE, SHIB also has utility in payments, with companies like Gamestop, Petco, and Nordstrom accepting payments in SHIB. Consequently, CNBC says Shiba Inu has a broader range of utilities than DOGE.
The CNBC report also analyzed on-chain metrics, such as daily active addresses for both SHIB and DOGE. Santiment’s data indicates that SHIB has had a range of 3,900 to 12,000 daily active addresses this year, with a spike to 36K on March 30.
DOGE’s daily active addresses have consistently been higher, ranging from 50K to 60K this year, with occasional spikes to 90K to 100K. This shows a greater network activity and adoption than SHIB. Other network activity metrics also demonstrate DOGE’s significant lead over SHIB.
However, DOGE’s higher metrics can be attributed to the support it has received from top celebrities and billionaires, particularly Elon Musk, who has consistently promoted the asset. In contrast, SHIB has primarily relied on community support to survive.
The report concluded that SHIB might not be able to surpass DOGE in market capitalization within the next year. However, it did not rule out the possibility of this happening at a later time.
Despite DOGE’s higher position and adoption rate, SHIB shows promise due to its strong community support and diverse use cases. The upcoming launch of Shibarium on the mainnet is also expected to enhance utility and drive adoption. Additionally, the community has also explored token burns to support the asset’s price. These efforts could potentially support SHIB’s goal of surpassing DOGE.
Moreover, launched in 2013, DOGE has a seven-year head start over SHIB, which was only launched in 2020. However, despite its relatively short lifespan, SHIB shows more promise than DOGE did in its early years back in 2016.
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