Will SHIB become the next DOGE and lead a new round of encryption craze?
The success of DOGE is no accident. Its rise coincided with the bull run of the cryptocurrency market in 2020. The viral spread of social media and celebrity effects (such as the support of Tesla CEO Elon Musk) jointly promoted DOGE’s explosive growth. .
Currently, with abundant global liquidity, emerging DeFi innovations, and prosperous NFT market, market expectations for new hot spots continue to rise. In this context, can SHIB copy DOGE’s path to becoming an “Internet celebrity coin” and take advantage of the momentum?
DOGE uses the Scrypt algorithm, with no upper limit on the total amount, and issuance is increased by 5% every year, while SHIB is issued based on the Ethereum ERC-20 standard, with a total amount of 1 quadrillion, half of which has been destroyed. Although both have high inflation attributes, SHIB attempts to achieve deflation through the destruction mechanism, which is different from DOGE and may affect its long-term value storage function.
The success of DOGE is inseparable from its strong community support and wide acceptance. Recent developments include the construction of practical application scenarios such as merchants accepting DOGE payments and charitable donations. SHIB has also accumulated a huge community base in a short period of time and is known as the "Dogecoin Killer". To become the next DOGE, SHIB needs to further expand application scenarios and enhance social influence.
The surge in DOGE is largely due to market speculation and the herd effect caused by celebrity effects. SHIB also attracts a large number of investors chasing short-term gains. Its price fluctuates violently and is highly speculative.
As the cryptocurrency market expands, regulatory agencies in various countries are becoming more stringent in their attitudes toward crypto assets. “Internet celebrity coins” such as DOGE and SHIB may face higher regulatory risks due to their lack of clear practical value. In addition, the risk of price bubble bursting caused by excessive market speculation cannot be ignored.
Whether SHIB can become the next DOGE depends on whether it can surpass or at least rival DOGE in terms of market background, technical characteristics, community ecology, investment psychology, etc., and successfully cope with the challenges of the regulatory environment and market risks. Although SHIB has certain potential, investors must remain rational when participating in it, fully understand the project characteristics and market dynamics, and do a good job in risk management. After all, although history can be learned from, the future cannot simply be copied.#Meme #SHIB #DOGEUSDT! #BTC