shib
Shiba Inu$0.00001786*
*prices delayed up to 10 minutes+0.47%
24HDisclosure: eToro USA LLC; Investments are subject to market risk, including the possible loss of principal.
Shiba Inu, a meme token based on a joke, seems far-fetched compared to an established legacy blockchain like Ethereum. However, Shiba developers continually expand their protocol into decentralized finance (DeFi) and non-fungible tokens (NFTs). Ethereum is currently the undisputed leading blockchain for DeFi and NFTs, and Shiba Inu uses the Ethereum Blockchain to undergo these functions.
This year, the DeFi space has seen an acceleration towards mass adoption. However, Ethereum cannot keep up with the pace of development due to scalability issues and exorbitant transaction fees. People with smaller funds to invest may not be able to participate because they can’t afford the transaction fees. As blockchain technology evolves, the most innovative and scalable networks have the best chance of survival.
- Use Cases of Shiba Inu and Ethereum
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Blockchains vs. DeFi Applications
DeFi is the next generation of finance using blockchain technology to act similarly to centralized finance like banks, brokerages and exchanges. However, DeFi systems allow people to borrow, lend and trade, avoiding centralization through smart contracts as a trustless third party.
Decentralized systems have the advantage of not having a centralized intermediary to provide security. In traditional finance, these central entities responsible for security are typically banks. All possible disputes use code to settle and stay on the network. Therefore, all users have control over and access to their funds at any time. Ultimately, this process results in lower costs and a smoother financial system.
The blockchain stores all the data and then disseminates that data across the network, eliminating any form of censorship, control, intrusion or even shutdown.
What Is Ethereum?
Ethereum is a distributed, open-source, decentralized computing platform that enables the creation of smart contracts or dApps. Ethereum’s launch in 2015 brought forth the beginning of a new generation of blockchains that would provide far more flexibility and functionality than previous blockchains. In contrast to Bitcoin and Litecoin, Ethereum provides the possibility of creating entire ecosystems of financial transactions.
Currently, Ethereum is the second-largest cryptocurrency after Bitcoin and is the leading platform for DeFi protocols. In allowing developers to implement smart contracts and build ever-more-complex projects, Ethereum has profoundly influenced the crypto space. Many projects, including Shiba Inu, are built on Ethereum; therefore, interoperability is becoming increasingly important in the cryptocurrency industry. Additionally, Ethereum 2.0 will be implemented soon, which will increase the platform’s scalability and modernize its protocols.
What Is Shiba Inu?
Shiba Inu (SHIB) launched with a mission to overtake Dogecoin as the dominant meme coin, and most hardcore blockchain enthusiasts view it as a joke. However, there is more to the Shiba project than just a dog-themed meme. The SHIB token is built on the Ethereum platform, and since its launch, Shiba has evolved into a completely decentralized ecosystem.
The project now offers 2 additional tokens, BONE and LEASH, and its DEX: ShibaSwap. SHIB underpins operations and can be used to pay for services across the Shiba ecosystem. The addition of new Shiba projects gives the token a better chance of longevity and could see it establish itself as the industry’s first meme-focused DEX.
Ethereum vs. Shiba Inu Market Capitalization
Ethereum and Shiba Inu each have multi-billion dollar market caps. Experts believe that a larger market cap makes a token a safer and more stable investment than small-cap tokens. However, there is no guarantee of stability in the volatile crypto markets, and price predictions are notoriously unreliable. Shiba currently sits in 11th place ($10 billion) by market cap, 9 spots below Ethereum sitting at 2nd place ($480 billion).
Use Cases of Shiba Inu and Ethereum
The Ethereum blockchain has the overall most utility in the crypto space. One of the earliest use cases, decentralized autonomous organizations (DAOs) are institutions devoid of central authorities. The DAO rules are coded in the software, and a community of stakeholders votes on administrative decisions. Ethereum also enabled startup fundraising via initial coin offerings (ICOs). ICOs are token sales similar to the traditional initial public offering (IPO) process.
The NFT market is exploding this year, creating yet another use case for Ethereum. NFTs are unique, indivisible and scarce digital assets useful in gaming, art and ensuring the provenance of luxury goods. DeFi is the most potent innovation to see an avalanche of use and growth on Ethereum. DeFi platforms reinvent traditional financial products and services, adding programmable, decentralized and censorship-resistant features to create new financial products.
Shopping.io is a platform allowing users to buy at major e-commerce stores through cryptocurrencies. As of now, the platform supports more than 100 cryptocurrencies, including SHIB. Holders can use their crypto to buy at Amazon.com Inc. (NASDAQ: AMZM), eBay Inc. (NASDAQ: EBAY) and big-box retailer Walmart Inc. (NYSE: WMT). All these uses strengthen Shiba Inu’s use case as a payment method. Any meme coin that finds suitable use cases with strong support from its community can have its place in the crypto industry.
Where to Buy Ethereum and Shiba Inu
Ethereum is an established cryptocurrency, so you don’t have to jump through hoops to get it. You can buy the ETH and SHIB tokens at crypto trading platforms, including Coinbase Global Inc. (NASDAQ: COIN) and Crypto.com. Coinbase, a centralized exchange, is straightforward and excellent for newcomers if you’re a beginner in the crypto markets. It would be wise to research several exchanges because each has unique benefits to offer users.
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What Has More Room to Grow: ETH or SHIB?
The price of Shiba Inu has reached a considerably large market capitalization ($10 billion), but when compared to Ethereum ($480 billion), it has a lot of room for growth. If Ethereum continues growing its market cap, it must become easier to use to make payments, which brings us to TenX. The TenX protocol enables users to buy goods and services using Ethereum, similar to a credit card or debit card, which thrusts Ethereum into becoming an accepted payment system in all parts of the world.
Shiba’s market capitalization ($10 billion) is considerably less than Ethereum, yet it is now entering the field of DeFi and NFTs. This move gives Shiba colossal growth potential in the years to come. One notable Shiba Inu project is the ShibaSwap DEX, which is the clearest indication that Shiba Inu has loftier ambitions than the development of meme coins. ShibaSwap delivers a user-friendly environment for trading cryptocurrencies in a completely decentralized manner. Shiba also launched the ShibaNFT marketplace that features a wide range of artists of diverse genres and styles.
From a product standpoint, however, Ethereum has much more room for growth. The ShibaSwap DEX is not revolutionary by any means, and the entire project relies on Ethereum to operate. Plus, Ethereum hosts hundreds of other protocols that give the project much more value than SHIB.
Current Cryptocurrency Prices
The crypto space has a total market cap of just over $2.6 trillion. Bitcoin (BTC) has recently broken its previous all-time high of $64,000 in October 2021. Ethereum (ETH) has broken strongly to the upside and is looking to climb higher, too. Most analysts anticipate the continuation of the bull market for the 4th quarter. Take a look at real-time crypto prices below:
So, What’s Better: Ethereum or Shiba Inu?
Both Shiba and Ethereum represent high-risk investments, so before you invest, you need to consider whether you are willing to accept the high level of volatility and risk.
Neither of these cryptos is considered a safe investment. However, Ethereum carries far less risk than Shiba due to its long track record and extensive name recognition. Shiba, on the other hand, may present more significant growth prospects if the hype surrounding meme coins continues.
Shiba Inu vs. Ethereum: Stability and Risk
A comparison of Shiba Inu and Ethereum is no easy task. Ethereum is an established project that has developed a lot of momentum to the point where it has now become the preferred platform for the vast majority of emerging DeFi projects, including Shiba’s.
Despite Shiba Inu’s apparent lack of seriousness, this characteristic may prove to be one of its most vital advantages. Having an engaged and loyal community can have a beneficial effect on price performance, as was demonstrated with Dogecoin, and Shiba is taking the proper steps in this regard.
Most people believe that Ethereum is a more stable investment but combined with a riskier investment, such as SHIB, could complement ETH as part of a diversified portfolio.
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About Tyran Christian
His expertise is in blockchain technology and cryptocurrencies.