The crypto market may be preparing for another bull market as this is usually the pattern following Bitcoin halving.
Investors are therefore seeking answers on which assets are most appropriate to buy at this time. If you’re one of them, you’re not alone. In this guide, we would like to compare Dogecoin and Cardano as potential investments.
You may be wondering which of the two is better, that is why you’re here. We’ll help you answer this question by highlighting the unique differences of these assets and their strengths and weaknesses so you can decide easily.
What Is Dogecoin (DOGE)?
Anyone who knows about meme coins knows about Dogecoin, because it is the number one meme coin, both by market capitalization and age. Launched in 2013, the cryptocurrency was referred to as a fun project not intended for anything serious.
It was inspired by the popular Shiba Inu dog breed which features prominently on the project’s logo. Dogecoin however grew in popularity, especially as Tesla CEO Elon Musk started showing interest in it.
Musk started tweeting about Dogecoin and it became popular on social media, drawing the attention of investors to it. As a result, Dogecoin soared in 2021, making many investors rich. The project team also considered improving it to make it more useful in real life.
Today, Dogecoin is more than just a joke cryptocurrency. It is used for a number of things, including payments in big companies, one of which is Tesla which accepts DOGE as payment for some of its merch.
Dogecoin is also developing capacity to host non-fungible tokens (NFTs). It already successfully minted its first NFT.
The project’s design mimics that of Bitcoin. It uses the proof-of-work (PoW) consensus that Bitcoin uses, requiring miners to use specialized computers to solve complex mathematical problems to verify transactions and mint new coins.
Dogecoin doesn’t have a maximum supply however, and the tokens will continue to be minted for life, making it an inflationary cryptocurrency. There are currently 145 billion DOGE in circulation and that is the total number that have been minted.
What Is Cardano (ADA)?
Cardano is a top proof-of-stake (PoS) network that has a growing community of users. The network was launched in 2017, and has grown slowly but steadily since. The founder, Charles Hoskinson believes in thorough research to ensure every change made to the network is a relevant change.
The network supports all things smart contract and decentralized applications, making it similar to Ethereum. However, Cardano is much more scalable, processing 250 transactions pers second.
Because of its scalability, Cardano transactions settle faster, and cost less than those of the PoW or PoS like Ethereum. The network has a native token known as ADA.
ADA is the sole token used to pay for transaction fees. It is also the staking asset on Cardano, used to secure the network by validators. In turn, validators are rewarded with more ADA for helping to secure the network.
ADA is also the governance token for Cardano.holders can vote for changes that should be implemented on the network. There are 35 billion ADA in circulation, with a total supply of 37 billion tokens. The maximum supply can be as large as 45 billion though.
This is much smaller than the current circulation supply of DOGE. The tokens are also pre-mined, which means they only need to be released into circulation, unlike Doge which needs mining.
Which Is a Better Buy?
If you’re looking for a crypto asset to buy as a long term investment, it’s important that you check the characteristics of the asset. For example, the number of tokens in circulation and the maximum supply is an important factor.
DOgecoin has an infinite supply of coins, which makes it inflationary and a bad investment. It also doesn’t have much use which drives the value. Therefore, ADA is the better choice as it has a smaller supply and several use cases.
