In a battle between Dogecoin and Shiba Inu, which cryptocurrency will be the top dog in 2025?
The cryptocurrency market has been red hot lately, and top meme coins have been active participants in the powerful bull rally. Dogecoin (DOGE -3.89%) has rocketed 268% higher across the prior year’s trading. The token now has a market capitalization of roughly $49.9 billion, and it ranks as the world’s seventh-largest cryptocurrency. Meanwhile, Shiba Inu (SHIB -1.09%) has posted gains of 114% over the last year. It has a market cap shy of $13 billion and ranks as the 15th-largest cryptocurrency.
Both tokens claim the Shiba Inu breed of dogs made popular by memes as their mascot. They’re also the largest and most popular meme coins in the world. Considering their shared traits and their positions in the market, which will wind up being the top dog in 2025?
The case for Dogecoin
As the largest meme coin by market cap, Dogecoin has an incumbent advantage. Even beyond that, Dogecoin was one of the first major cryptocurrencies created — it was made as a spoof on Bitcoin in 2013. People who bought the dog-themed token and held on for the long term have wound up having the last laugh.
If investors are looking for a meme token with staying power, Dogecoin’s track record and pedigree make it best of breed. But I think there’s an even bigger and better catalyst that could push the cryptocurrency higher.
While Dogecoin has many enthusiastic supporters around the world, none can match the profile and influence of Tesla CEO Elon Musk. The tech leader has taken the initiative to champion the Dogecoin token, and he’s helped power massive valuation gains for the cryptocurrency. Even if Musk’s championing of Dogecoin has often taken the form of playful jokes or seemingly semi-ironic support, it’s undeniable that he’s played a significant role in pushing its token price higher. It’s possible he’s still just getting started on that front.
Within the incoming Trump administration, Musk will be heading up the proposed Department of Government Efficiency (DOGE) alongside entrepreneur Vivek Ramaswamy. The acronym for the new commission hardly seems like an accident. While the Department of Government Efficiency would focus on identifying and reducing instances of wasteful government spending rather than on the cryptocurrency, the new organization could produce some favorable effects for Dogecoin.
The Department of Government Efficiency is already generating tons of headlines, and the new Trump administration hasn’t even kicked off yet. With each news story that is published about the advisory commission, Dogecoin will effectively be getting free press. As far as advertising for a cryptocurrency goes, it’s hard to imagine a more prominent spokesperson than Musk. This dynamic alone makes Dogecoin a top cryptocurrency to watch in 2025.
The case for Shiba Inu
With Shiba Inu trading at less than $0.000025 per token as of this writing, the cryptocurrency is much cheaper than Dogecoin on a pure-dollar basis. That means that investors are able to buy a much greater number of Shiba Inu coins for the same amount. While this doesn’t necessarily mean that Shiba Inu will outperform Dogecoin, it does make the token more appealing to some investors.
Shiba Inu also has a much smaller market capitalization than Dogecoin. If Shiba Inu’s market cap were to grow to match Dogecoin’s, investors who bought the smaller token at today’s prices would see gains of roughly 272%. Having a smaller market capitalization potentially leaves the door open for Shiba Inu to see more explosive returns than its chief rival in the meme-token space.
Additionally, projects within the Shiba Inu ecosystem suggest that the token could have some advantages in terms of fundamentals compared to Dogecoin. In 2023, onlookers saw the roll-out of the Shibarium Layer-2 blockchain network to improve scalability and lower transaction costs within the Shiba Inu ecosystem. The team behind the project has continued to work on improving security, features, and functionality.
The Shibarium team is also working on a metaverse project that connects to the Shiba Inu ecosystem. SHIB: The Metaverse is intended to function as a discussion and socialization hub for the token’s community, and it could help attract new investors. The project’s metaverse could finally go into wide launch next year, and it’s possible that the virtual world could be a significant bullish catalyst for the Shiba Inu token.
So which meme coin is the better buy?
Based on respective strengths, weaknesses, and opportunities, I think Dogecoin will likely significantly outperform Shiba Inu in 2025. Both cryptocurrencies are meme coins, and exposure and momentum are likely to be bigger performance catalysts than underlying fundamentals. Additionally, while Shiba Inu has some projects that could eventually strengthen its value case on a fundamental basis, these projects have looked somewhat underwhelming so far.
Accordingly, I think that Musk’s implicit and explicit support for Dogecoin positions it to be the better-performing meme coin next year. Musk has already shown that his memes and support can significantly affect the crypto market, and the stage seems to be set for Dogecoin to receive more promotion next year.
However, investors shouldn’t base their significant investment decisions on what might happen over the course of one year. Predicting performance across a relatively small period of time is almost impossible to do with a high level of consistency because new and unknowable catalysts and market dynamics will emerge and shape results. This is especially true when it comes to highly volatile meme coins.
Ultimately, I think the same factors that make Dogecoin a better investment candidate than Shiba Inu over the next year will lead to it delivering better performance over the next five years as well. But investors who are looking to gain exposure in the crypto space probably shouldn’t go all in on either of these meme coins. If you’re looking to build positions in crypto in 2025, consider investing in established leaders, including Bitcoin and Ethereum, in addition to any high-risk meme tokens you might buy.
