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The Meme Coin Duel: SHIB, DOGE, and PEPE in 2024.

The Meme Coin Duel: SHIB, DOGE, and PEPE in 2024.

By Oreld Hadilberg
Reviewed by Tony Spilotro

Table of Contents

Introduction:

"Meme coins" or "cryptocurrency memes" are a type of cryptocurrency that originated as an online joke or parody but often gained value and popularity within the crypto community. These cryptocurrencies often use humorous names or concepts and, in many cases, are based on popular internet memes.

Notable examples of meme coins include Dogecoin (DOGE), Shiba Inu (SHIB), and others that have emerged as viral phenomena on social media. Although initially created as jokes, some have garnered active communities and attention in the cryptocurrency markets. However, it's crucial to note that meme coins can be highly volatile and may not always follow traditional investment logic.

How do meme coins work?

Meme coins, often created as a light or humorous take on cryptocurrencies, function similarly to other digital currencies but are usually designed with meme-related themes. Here's an overview of how these coins typically operate:

Creation and Concept:

Meme coins are often created based on internet memes, jokes, or cultural references. The concept behind the coin is usually humorous or satirical, leveraging internet culture to attract attention.

Blockchain Technology:

Like traditional cryptocurrencies, meme coins are built on blockchain technology. They can use existing blockchain platforms like Ethereum .

Smart Contracts:

Many meme coins are implemented through smart contracts, self-executing contracts with terms written directly in code. Smart contracts can automate various functions, including token creation, distribution, and governance.

Tokenomics:

Meme coins have their own tokenomics, defining rules for token distribution, supply, and usage. This includes details such as total supply, inflation or deflation mechanisms, and any token burning mechanism.

Community Involvement:

Meme coins heavily rely on community involvement. Social media platforms, forums, and other online spaces are used to build a community around the coin. Community members can contribute to its development, promotion, and even influence its direction.

Use Cases (or Lack Thereof):

While some meme coins may have specific use cases or utilities, many are created without a clear purpose beyond the meme itself. Some may be used for tipping, community rewards, or simply as a form of entertainment.

Volatility and Risks:

Meme coins are known for their high volatility. Their value can be significantly influenced by social media trends, celebrity endorsements, or market speculation. Due to this volatility, investing in meme coins comes with risks, and potential investors should exercise caution and conduct thorough research.

Listing on Exchanges:

Successful meme coins may appear on cryptocurrency exchange listings, making them tradable against other cryptocurrencies or fiat currencies. Listing on popular exchanges often increases liquidity and accessibility.

Will PEPE Outperform Dogecoin and Shiba Inu?

The cryptocurrency PEPE is on the rise, currently representing 5% of Dogecoin's market capitalization, exceeding $10 billion, and 10% of Shiba Inu's market capitalization, which is around $5 billion.

Chase Devens, a researcher at Messari, raises the possibility that PEPE could surpass both coins at some point, if only momentarily, thanks to its growing legitimacy. A key factor in this rapid value increase lies in its immediate listings on popular exchanges like Binance, in contrast to the delays experienced by other meme coins.

PEPE's quick integration into centralized exchanges, including Binance, the world's largest, has contributed to its growth. Additionally, PEPE already offers perpetual futures with leverage up to 100x on exchanges like Binance and Bybit, quickly surpassing spot trading daily volumes.

This phenomenon aligns with the 100% increase in daily active users on Uniswap on Ethereum, approaching its all-time high since May 2021. The combination of accessibility, legitimacy, and advanced derivatives could propel PEPE to outperform its competitors, marking a milestone in the fascinating and volatile world of meme coins.

In contrast to DOGE, which took nearly four years to reach the milestone, PEPE has gained astonishing popularity in a remarkably short time span. In just three weeks since its launch, this meme-inspired cryptocurrency quickly reached a billion-dollar market capitalization, marking an impressive achievement in its short journey. PEPE has gained community support and has been listed on various prominent exchanges, from Bybit to the giant Binance.

Following the DOGE pattern, PEPE experienced a similar trajectory after surpassing the billion-dollar market capitalization. On May 5, the promising memecoin was on the verge of reaching $2 billion in market capitalization, only to see a rapid drop to $725 million on May 9 after touching $1.82 billion.

As of the time of this edition, the PEPE token is trading at $0.00000192 per token, with a market capitalization of $509,872,597. The rollercoaster of its valuation suggests inherent volatility, but PEPE's rapid ascent highlights its impact on the dynamic and ever-surprising world of meme cryptocurrencies.

The Rise of Dogecoin.

Dogecoin, born as a satire of the cryptocurrency world, was conceived by software engineers Billy Markus and Jackson Palmer four years after Bitcoin's genesis block. Initially designed as a joke, this "memecoin" caught attention in January 2014 by reaching a market capitalization of $60 million. Four years later, Dogecoin achieved its first billion-dollar milestone and a price of $0.0100 per coin.

In 2018, after hitting the billion-dollar threshold, Dogecoin experienced ups and downs, reaching a peak of $0.0175 before retracting to $0.0069. However, on May 8, 2021, Dogecoin surprised the crypto world by reaching a market capitalization of $88 billion and a record price of $0.7315, coinciding with the overall market bull run.

The story of Dogecoin took an unexpected turn when Elon Musk, CEO of Tesla, became one of its most prominent supporters. His tweets and comments significantly influenced the price and public attention towards Dogecoin. Although originally created as a mockery, Dogecoin has become an unexpectedly influential figure in the crypto sphere, challenging expectations and leaving a unique mark on the history of cryptocurrencies.

The Course of Dogecoin: Beyond Fame

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The fate of Dogecoin is intrinsically tied to the power of the network effect, a determining factor that has driven the massive adoption of technologies in the past, from the telephone to the internet. In an ever-expanding crypto landscape, Dogecoin maintains its allure, captivating both retail investors and major players, thanks to its iconic status and entrenched popularity on social media and among famous personalities.

Despite its charm, Dogecoin faces criticisms, including Elon Musk's prominent one, regarding the marked concentration of coins in the hands of a few large investors. It is estimated that over 50% of Dogecoin's total supply circulates in just around 20 wallet addresses, a fact that raises concerns about the possibility of these influential investors deciding to sell simultaneously, triggering significant price volatility.

Looking to the future, the destiny of Dogecoin will depend not only on its current notoriety but also on its ability to evolve and address these concerns. Market dynamics and the willingness of the crypto community to embrace changes could play a crucial role in Dogecoin's trajectory, taking it beyond its origin as a meme coin towards a more solid and sustainable status in the vast world of cryptocurrencies.

Shiba Inu Evolving

Entering the crypto scene in 2020, Shiba Inu has risen to the 17th position among the most valuable cryptocurrencies. Although born as a meme coin without real utility, the community and developers have worked diligently to change this narrative over the past year.

In an attempt to shed its meme coin label, Shiba Inu has evolved, incorporating features from more established cryptocurrencies. Now, holders can engage in yield farming, acquire NFTs, and explore DeFi protocols. Plans for a Shiba Inu-based metaverse are even on the horizon, marking a departure from its meme-centric roots. Despite these advancements, doubts persist about whether these efforts are enough to change Shiba Inu's fate.

Shiba Inu is undergoing an evolutionary process, while Dogecoin remains active. Some believe that Shiba Inu could outperform Dogecoin due to changes in its ecosystem. Before the last market boom in 2021, Dogecoin was already a payment method used by companies like Tesla, Twitch, and Newegg.

In contrast, Shiba Inu, in its early days, relied primarily on its community to grow. However, over the past 18 months, Shiba Inu has been developing use cases for its ecosystem, with Shibarium being its most notable development.

Shibarium, a layer-two (L2) network, is built on the Ethereum (ETH) blockchain. It's relevant to note that, unlike Shiba Inu, Dogecoin has its own blockchain. Despite the excitement generated by Shibarium, some players believe that Shiba Inu is close to changing the game against Dogecoin.

On the other hand, Dogecoin has not been idle. Elon Musk's recent acquisition of X (formerly Twitter) has positioned Dogecoin favorably for increased adoption in 2024. The X team plans to integrate a payment system during the year, backed by Musk's ongoing interest in Dogecoin.

As both cryptocurrencies evolve and adapt, the competition between Shiba Inu and Dogecoin intensifies, promising an exciting scenario in the crypto space for the coming year.

Shiba Inu Could Outperform Pepe Coin and Dogecoin.

Over the past year, the combined market capitalization of the cryptocurrency market has experienced a significant increase of 106%, reaching $1.76 trillion. Although Shiba Inu has seen a 20% increase, compared to Bitcoin's 157% and Ethereum's 86%, it still benefits from the overall momentum in the crypto space.

The outlook for Shiba Inu in 2024 is optimistic, as the overall crypto market shows a bullish trend. The expectation of rate cuts by the Federal Reserve could be a catalyst, as lower rates encourage investors to take on more risks. This could be especially beneficial for Shiba Inu if the Federal Reserve implements significant rate cuts this year.

There are specific features and projects associated with Shiba Inu that could boost its performance. The Shibarium Layer-2 solution, designed to improve transaction speed, could increase the adoption of the cryptocurrency. Additionally, SHIB: The Metaverse, an online virtual world connected to the token, could also contribute to the promotion of the currency and generate additional gains.

In summary, a combination of favorable macroeconomic factors, innovative technological features, and projects related to Shiba Inu could position it to outperform Pepe Coin and Dogecoin in the future.

SHIB and DOGE are in competition for demand. So far, over 410 trillion SHIB has been burned, according to Shibburn data. On December 4, 2023, Shiba Inu announced a change in its burning model, which would take effect in January 2024, anticipating an increase in the token's value.

Despite its strategy, SHIB faces a significant challenge compared to Dogecoin due to its significantly higher circulating supply. With 589.54 trillion SHIB tokens in circulation, it surpasses the 142.43 billion DOGE.

Although both experienced similar price evolutions in 2023, DOGE has an advantage with a 29.14% increase to $0.09, while SHIB, valued at $0.000010, experienced a 28.33% increase until the last day of the previous year (December 31, 2023).

Looking ahead to 2024, the correlation between these cryptocurrencies could persist, but SHIB's challenge lies in surpassing DOGE's circulating supply to gain investor preference.

Conclusion

In conclusion, the world of meme cryptocurrencies, represented by coins like SHIB, DOGE, and PEPE, remains a fascinating and volatile phenomenon. While these coins started as jokes, they have evolved to compete in a dynamic crypto market. The current narrative highlights the rise of PEPE, challenging DOGE and SHIB, thanks to its rapid legitimization and adoption on prominent exchanges. Meanwhile, DOGE holds onto its iconic status, backed by Elon Musk's attention and future projects. SHIB seeks to overcome its meme label, exploring new features and projects. The competition between these cryptocurrencies promises an exciting scenario in 2024, marked by volatility, technological evolution, and changing perceptions in the crypto community.

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