Why is Shiba Inu Underperforming Dogecoin?
During the last 12 months, Shiba Inu has underperformed Dogecoin. See Chart below
Let us breakdown the performance across various time frames
- Sep 2022 to Dec 2022- Shib: -38.2%, Doge: +15.2% [Elon Musk Twitter Deal]
- Jan 2023 to May 2023- Shib: +4.7%, Doge: +1.7%
- June 2023 to Sep 2023- Shib: -10.6%, Doge: -11.7% [Shibarium launch]
While Dogecoin led for most of last year, Shiba Inu is marginally ahead thanks to Shibarium. However, a marginal lead despite Shibarium is not good news for Shiba Inu. Here is why Shiba Inu is trailing Dogecoin
- One of the main reasons for Shiba underperforming Doge is the acceptance and Doge being backed by popular personalities. Shiba has a better ecosystem than Doge on paper. Doge despite having a limited ecosystem has been promoted by the well-known faces. One is Tesla and SpaceX CEO Elon Musk. Elon has been the face of Doge and he has been the face of trust for Doge. With Musk’s takeover of Twitter and plans to transform Twitter (X) as a fintech firm, Doge is at pole position on X (Twitter)
- The other reason for Shiba underperforming Doge is the lack of competitive advantage versus other cryptocurrencies. With Shibarium just rolled out, this could give Shib the edge. Investors are willing to pay a small premium for the potential of Shibarium. But Shibarium’s performance vis-a-vis NFTs/DeFi and other applications over the next few months will determine Shiba Inu’s future.
- Bitpay included Shiba Inu in December 2021, Dogecoin was included by Bitpay in March 2021.
- By August 2023, Dogecoin made up 6.3% of all payments (down from 9.8% at the end of 2022)
- Shib which made up of a minuscule (0.15%) of payments in December 2022 is now zero
Today, Doge has the edge in terms of utility (thanks to Elon and payments) while Shib appears to have the potential owing to developments in its ecosystem. It needs to be seen if Dogecoin will sustain its lead or if Shib will make the most out of its ecosystem.