Can Shiba Inu flip Dogecoin in 2024?

Although market participants expected memecoin to surge as other altcoins rose, the top two memecoins on the market, Shiba Inu (SHIB) and Dogecoin (DOGE), failed to lead the rally in 2023.

However, poor performance is not the main problem with these cryptocurrencies. Conversely, debate over the likelihood of Shiba Inu surpassing Dogecoin has arisen at other times.

For example, investor Jake Gagain postal On September 5, 2023, SHIB will confidently flip DOGE in the 2024 cycle.

As of this writing, the Shiba Inu has a market capitalization of $6.2 billion. Dogecoin, on the other hand, has a market capitalization more than twice that of SHIB, at $12.8 billion.

source: mood

Shiba Inu grow But Dogecoin doesn’t sleep quiet

One of the reasons many believe Shiba Inu may overthrow Dogecoin is due to changes in the ecosystem. Before the last bull run in 2021, Dogecoin had already developed as a payment method.

To some extent, companies like Tesla, Twitch, and Newegg all use DOGE as a payment option.

During that time, the Shiba Inu relied entirely on their community to thrive. However, over the past 1.5 years, Shiba Inu has developed use cases for its ecosystem. The most significant development is Shibarium.

Shibarium is the layer 2 (L2) network of the Shiba Inu ecosystem, built on the Ethereum blockchain. It’s worth noting that unlike its peers, Dogecoin has its own blockchain.

Shibarium’s growth has been accompanied, in part, by hype. This is one of the reasons why some players believe that the time for SHIB to overthrow DOGE is approaching.

However, Dogecoin isn’t stopping just yet. Additionally, Elon Musk’s acquisition of X (formerly Twitter) puts the coin in the best position to increase adoption in 2024.

That’s because the X team plans to integrate the payments system within a year, and Musk’s love for DOGE means the token could be an option for that move.

No drama for either of them in 2024

If this happens, and Shiba Inu succeeds in progressing to the L2 level, the battle between the two programs could intensify.

David Kemmerer, CEO of cryptocurrency tax software CoinLedger, said SHIB could make significant progress by 2024 but may not overturn DOGE within a year.

“I doubt we’ll see it overthrow Doge. This is largely due to the fact that these coins have been around for so long – SHIB has not yet grown at the significant rate needed to overtake a coin as old as DOGE in just one year. level.”

In addition to market cap and use cases, many other factors could affect Shiba Inu’s position in 2024. One important factor is SHIB destruction.

The Shiba Inu team introduced a burning mechanism to control the token supply and increase its value in the long run.

SHIB and DOGE compete for demand

According to website information HibbenAs of this writing, the total number of SHIBs destroyed has exceeded 410 trillion. On December 4, 2023, Shiba Inu announced to the community that they were changing the way they burn.

according to Announcethe new mechanism will start in January 2024, noting that the token value will increase.

However, SHIB faces significant strategic obstacles compared to Dogecoin. This is mainly due to circulating supply. According to data from CoinMarketCap, the number of SHIB tokens in circulation is 589.54 trillion.

Although the supply of DOGE is unlimited, there are 142.43 billion tokens in circulation. If demand for both cryptocurrencies grows at the same rate, it will be difficult for Shiba Inu to overthrow Dogecoin.

However, SHIB and DOGE price trends are similar in 2023.

As of this writing, DOGE price is $0.09. The value is up 29.14% year-to-date (YTD). As of the time of writing, SHIB’s price is $0.00001, up 28.33%.

Going into 2024, these currencies are likely to continue to be correlated with each other.

source:CoinMarketCap

New competition for market kings dairy cow forward

However, Shiba Inu and Dogecoin may not be the leading memecoins in the 2024 cycle, as other memes have emerged and completely surpassed DOGE and SHIB.

For example, Frog-themed PEPE rose 2.2%. BONK on Solana grew by 4,560% during the same period. Although FLOKI was late to the 2021 bull run, it was still up 338%.

Gracy Chen, managing director of Bitget Exchange, said that DOGE and SHIB may not receive the same attention as in 2021.

She also mentioned that cryptocurrencies such as BONK and Dogwiphat (WIF) may perform better in 2024.

Regarding the Shiba Inu, Chen noted:

“SHIB is unlikely to become the top meme coin by 2024. To achieve this goal, it will need to at least double its current market cap of $6 billion. If price is considered, to exceed DOGE, it will need to rise 9,000 times.”

Bitget MD also mentioned Dogecoin. According to her, Dogecoin will still be the number one meme coin by market capitalization by 2024. She gave the reason:

“The fact that the world’s richest man still displays the Dogecoin logo on his X profile will continue to drive the development of the coin and contribute to its growth in value.”

HODLers prefer DOGE, but…

From the perspective of the number of holders, DOGE dominates relative to SHIB. As of this writing, the total number of SHIB holders is 1.36 million.data santiment It shows that the number of DOGE holders is four times that of SHIB, at 5.71 million.

source: mood

It is worth mentioning that the growth in the number of DOGE holders in 2023 exceeded that of SHIB. Such a situation shows that most of the market is betting that Dogecoin will perform better in the coming months.

Going into 2024, Shiba Inu may not overthrow Dogecoin despite some recent milestones.

Considering the current and potential prospects, DOGE will likely remain the memecoin with the highest market capitalization. The Shiba Inu probably still ranks second. But both projects may need to be wary of other viral memes — especially BONK.

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