The cryptocurrency market has been red hot lately, and major coins have been actively participating in the powerful bull rally. Dogecoin(CRYPTO:DOGE) soared 268% over the past year’s trading. The token now has a market capitalization of around $49.9 billion and ranks as the seventh largest cryptocurrency in the world. In the meantime, Shiba Inu(CRYPTO: SHIB) has posted gains of 114% over the past year. Its market capitalization is less than $13 billion and ranks 15th among cryptocurrencies.
Both tokens claim the Shiba Inu dog breed made popular by memes as their mascot. They are also the largest and most popular meme coins in the world. Considering their common characteristics and market positions, which one will end up being the top dog in 2025?
As the largest coin by market capitalization, Dogecoin has a historical advantage. Beyond that, Dogecoin was one of the first major cryptocurrencies created — it was made as a parody on Bitcoin in 2013. People who bought the dog-themed token and held onto it for the long term ended up having the last laugh.
If investors are looking for a durable meme token, Dogecoin’s track record and pedigree make it the best of its breed. But I believe there is an even bigger and better catalyst that could push the cryptocurrency higher.
Although Dogecoin has many enthusiastic supporters across the world, none can match Dogecoin’s profile and influence. Tesla CEO Elon Musk. The tech leader took the lead in championing the Dogecoin token and it helped drive massive valuation gains for the cryptocurrency. Even though Musk’s defense of Dogecoin has often taken the form of playful jokes or seemingly semi-ironic support, there is no denying that he has played a significant role in driving up the token price. It is possible that he is just starting out in this field.
In the new Trump administration, Musk will lead the Department of Government Effectiveness (DOGE) project alongside entrepreneur Vivek Ramaswamy. The acronym of the new commission hardly seems to be a coincidence. While the Department of Government Efficiency would focus on identifying and reducing instances of wasteful government spending rather than cryptocurrency, the new organization could produce favorable effects for Dogecoin.
The Department of Government Effectiveness is already making headlines, and the new Trump administration has yet to get underway. With every article published on the advisory board, Dogecoin will effectively benefit from free press. When it comes to cryptocurrency publicity, it’s hard to imagine a more prominent spokesperson than Musk. This dynamic alone makes Dogecoin a top cryptocurrency to watch in 2025.
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. This means that investors can purchase a much larger number of Shiba Inu coins for the same amount. While this does not necessarily mean Shiba Inu will outperform Dogecoin, it does make the token more attractive 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 that of Dogecoin, investors who purchased the smaller token at today’s prices would see gains of approximately 272%. A smaller market cap potentially leaves the door open for Shiba Inu to achieve more explosive returns than its main rival in the meme token space.
Additionally, projects within the Shiba Inu ecosystem suggest that the token may have some fundamental advantages over Dogecoin. In 2023, viewers witnessed the deployment of the Shibarium Layer-2 blockchain network to improve scalability and reduce transaction costs within the Shiba Inu ecosystem. The team behind the project 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 community, and could help attract new investors. The project’s metaverse could finally launch widely next year, and it’s possible that the virtual world could be a significant bullish catalyst for the Shiba Inu token.
Based on their respective strengths, weaknesses, and opportunities, I believe Dogecoin will likely significantly outperform Shiba Inu in 2025. Both cryptocurrencies are meme coins, and exposure and momentum will likely be greater catalysts for performance than the underlying fundamentals. Additionally, while Shiba Inu has plans that could eventually fundamentally boost its value, those plans have seemed somewhat disappointing thus far.
As a result, I believe Musk’s implicit and explicit support for Dogecoin makes it the best performing coin next year. Musk has already shown that his memes and support can significantly affect the crypto market, and the stage appears to be set for Dogecoin to receive more promotion next year.
However, investors should not base important investment decisions on what might happen in any one year. It is almost impossible to predict performance over a relatively short period of time with a high level of consistency, as new, unknowable catalysts and market dynamics will emerge and shape results. This is especially true when it comes to highly volatile meme coins.
Ultimately, I believe the same factors that make Dogecoin a better investment candidate than Shiba Inu over the next year will also allow it to perform better over the next five years. But investors looking to make a name for themselves in the crypto space probably shouldn’t jump into either of these meme coins. If you’re looking to build crypto positions in 2025, consider investing in established leaders including Bitcoin and Ethereumin addition to all the high-risk meme tokens you could buy.
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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool holds positions at and recommends Tesla. The Mad Motley has a disclosure policy.
