As Ethereum merge is so nearby, SHIB stands a little further ahead of DOGE.

Is Shiba simply trading on Dogecoin's recent success, or does the project have any genuine long-term viability? Being an ERC-20 token, SHIB uses a proof-of-work mechanism that gives it a similar transaction rate to Dogecoin for all intents and purposes. However, this may change when the Ethereum network shifts to a proof-of-stake mechanism, which could give SHIB a competitive advantage over DOGE.

Dogecoin is known for its active community and celebrity endorsements, but ultimately the price of an asset is determined by supply and demand. Whereas some cryptocurrencies limit their supply to create scarcity, Dogecoin has remained true to its remit of creating a genuine peer-to-peer payment system by adopting an inflationary mechanism. The idea is that this will prevent investors from holding the token and taking large sums out of circulation, whilst keeping transaction fees down in the long term. Dogecoin increases its supply at a rate that currently equates to around 5 billion DOGE per year. This means that there are always enough tokens in supply to support transactions and allow DOGE to serve its purpose. In theory, market forces will eventually determine how much DOGE is released into the network, as with fiat currency.

The developers behind Shiba Inu have taken a different approach when it comes to the token's supply mechanism. SHIB has a circulating supply of 500 trillion and a total cap set at 1 quadrillion. However, a large amount of the supply was burned by Ethereum co-founder Vitalik Buterin – it isn't clear if this was the intention behind Shiba developers sending him the token. Still, it was largely seen as a thumbs down from the Ethereum founder. The Shiba website proudly states that the remaining SHIB – that which Buterin did not burn – was entirely locked up in the Uniswap exchange, meaning that anyone looking to trade SHIB must do so on the open market.

It may seem as though Shiba is more or less a copycat of Dogecoin, seeking to cash in on the latter's recent success – and to an extent this is true. However, SHIB has a few aces up the sleeve that could see it eventually becoming the Doge Killer it has been touted as. Firstly, as we have already mentioned, SHIB is an ERC20 token. This means it has far more applications that involve interaction with other Ethereum-based projects – particularly the major DeFi projects.

Shiba is also putting the finishing touches on ShibaSwap, which allows buyers to trade SHIB for other cryptocurrencies. There are two more coins – BONE and LEASH from the same developers. Finally, Shiba is also entering the NFT market with its artist incubator program. Once again, this is a nascent initiative but it effectively involves putting together a community of artists and various entertainment industries to "lead the artistic Shiba movement as [it] explores how to bring [its] unique position into the NFT market." So, will Shiba Inu be able to topple DOGE as the top meme coin? Perhaps. But, in any case, anyone interested in investing in SHIB will want to keep a close eye on these developments.