Binance Coin and Dogecoin are both huge names in the cryptocurrency space - but for very different reasons. So which one is the better buy in 2022?
As DeFi continues to be more prominent in the blockchain world and a host of exciting new projects continue to appear, many casual observers might be surprised to find that the list of top cryptocurrencies is still dominated by established big-names, such as Bitcoin, Binance Coin, Ripple and Dogecoin.
Binance Coin and Dogecoin were launched in 2017 and 2012 respectively, making Binance the newer of the two. However, whereas Dogecoin took several years to build notoriety, BNB quickly became a stalwart of the top five cryptocurrencies by market cap.
When it comes to investing, Binance Coin and Dogecoin present differing opportunities. Whereas BNB is the native token of the largest digital exchange in the world, Dogecoin has become arguably the world’s most fashionable token on the market.
If you want to weigh up Binance Coin vs Dogecoin, then the following review should help you to identify the key differences between the tokens and decide which one best fits your investment strategy.
Dogecoin vs Binance Coin
Both Binance Coin and Dogecoin are top ten cryptocurrencies that have the potential to offer serious returns. However, anyone considering investing in either coin should be aware that they are very different beasts and understanding how they differ is essential in putting together a strategy.
Binance Coin (BNB) is currently a top-five cryptocurrency behind the likes of Bitcoin and Ethereum and is the native currency of the world’s biggest cryptocurrency exchange - Binance. Interestingly, Binance Coin started life as an ECR-20 token on the Ethereum network but moved to its own proprietary network in 2017.
As the native token of the Binance Exchange, BNB has a certain degree of stability. The platform processes over 1.4 million transactions per second and discounted rates are available for those paying in BNB, so naturally, it is often in high demand.
BNB is also an integral part of the exchange system, which means it experiences a consistently high trading volume. It also has a use case as a viable means of peer-to-peer payment for retail transactions and developers behind the Binance Exchange have launched their own payments platform to rival the likes of PayPal - BinancePay.
Transactions and Speed
When it comes to transaction speeds, then Binance throws out some fairly respectable numbers. Since the launch of the Binance Smart Chain, an advanced dual-chain network, Binance is said to be able to process an estimated 55 - 56 transactions per second. For reference, Ethereum is capable of around 30.
With a block creation time of just 3 seconds, Binance is also substantially faster than Dogecoin, which has an estimated BCT of around 1 minute. Of course, with the launch of the Binance Smart Chain, then BNB exists within an infinitely more sophisticated architecture than Dogecoin and should in theory be much more scalable in the long term.
BNB also offers low transaction fees, which helps it stay relevant as a peer-to-peer payments system and effectively allows it to compete on Dogecoin’s turf.
Supply and Demand
Any investor knows that an asset’s value is ultimately dictated by supply and demand. Being the native token of the Binance Exchange, it will come as little surprise that BNB is often in high demand, with a trading volume approaching $4.5 bn.
Binance Coin manages its supply via an in-built deflationary mechanism. Every three months or so, the firm behind Binance spends approximately 20% of its profits on buying back BNB to burn - thus removing from circulation and increasing scarcity of the token over time.
The process of buying back BNB and burning it off is set to continue until 100 million tokens have been permanently removed from the network. This equates to half of the total 200 million supply and will massively increase the scarcity of circulating BNB. In theory, this will have a positive effect on the token’s value.
Read Also: Pros And Cons Of Binance Coin
It’s no secret that Dogecoin started life as a joke - a way of Billy Markus and Jackson Palmer to lampoon the cryptocurrency market over the way investors had worked up into a frenzy over the major tokens at the time.
When it launched in 2013, few people took Dogecoin seriously. However, under all the jokes and memes, the token actually had some pretty solid credentials and was largely modelled on Litecoin. The blockchain uses the Scrypt algorithm for its proof-of-work mechanism which, whilst not as efficient as PoS, is still quicker than rivals like Bitcoin.
Another thing that proved not to be such a joke was Dogecoin’s remarkable price movement. Just a few weeks after launching, it was up by 300% or so. Of course, this didn’t last long but when Tesla mogul Elon Musk started showing interest, DOGE experienced further price surges and is now firmly established as “the people’s cryptocurrency”.
Transactions and Speed
Dogecoin is hardly the slowest blockchain on the market, but it isn’t breaking any speed records with its block creation time of around one minute. This allows for roughly 30 transactions per second, which is similar to Ethereum but well behind Binance Coin.
The DOGE blockchain has a pretty robust proof-of-work consensus mechanism, which uses Scrypt rather than SHA256, hence Dogecoin has a speed advantage over the likes of Bitcoin. However, proof-of-work is looking increasingly more dated due to its energy requirements and sluggishness when compared with the latest proof-of-stake blockchains.
When it comes to transaction speeds, Dogecoin is hardly a match for Binance Coin, but it has so far not been an issue for the project when it comes to price increases and DOGE continues to be amongst the top ten cryptocurrencies by market cap.
Supply and Demand
Dogecoin’s remit is to provide a genuine alternative to fiat currency when it comes to retail transactions for the everyday consumer. As such, the token actually has an inflationary mechanism, which means DOGE becomes more abundant over the years. However, to stabilise the price of DOGE, it is said that a maximum of 5 billion tokens can be released in any one year.
Because of its inflationary mechanism, there is always going to be enough Dogecoin to support buying and selling on the blockchain. In addition, Dogecoin miners are always incentivised and aren’t going to see their rewards diminish over time - which means the network will, in theory, continue to run efficiently.
Whilst some investors may balk at inflationary coins, it should be noted that this is far more in line with how fiat currency works and should allow Dogecoin to fulfil its original objective of becoming an alternative payment option.
Binance Coin vs Dogecoin: Which Is The Better Investment?
When it comes to technical particulars, it appears that Binance Coin has the edge over Dogecoin. With the Binance Smart Chain being launched, BNB now has a huge amount of potential as an investment opportunity.
That being said, Dogecoin has shown just how significant a strong community can be and DOGE continues to be the most fashionable cryptocurrency on the market.
The reality is that technical particulars do not necessarily tell us which token will prove to be a better investment. Instead, we need to take a look at other indicators, including existing price data, expert predictions and forecasts from leading analytical platforms.
Dogecoin Vs Binance Coin: Price History
All cryptocurrency price forecasts are generated by looking back at previous price movement. This tells us how a token price has been affected by various market forces and how a particular project’s value has tracked with the wider cryptocurrency market.
Despite surging in popularity and establishing itself as one of the top five cryptocurrencies in the space, Binance Coin hasn’t undergone any huge price increases such as those seen by Ethereum and Bitcoin - both of which now trade for thousands, if not tens of thousands of dollars.
However, that isn’t to say that BNB hasn’t proven itself as a solid investment opportunity. The token sailed past the $1-mark within its first few months of trading and continued to rise steadily, eventually reaching $23.91 in January 2018, before a downturn saw BNB sink back to $8.11.
Binance Coin remained in a fairly narrow band for the next year or so, fluctuating between $10 and $20 until well into 2019. There was then something of a surge in price, with BNB reaching a then-record high of $38 in July. This uptick proved to be short-lived however and Binance Coin dropped back below $20 and remained there for over a year.
Things changed dramatically in 2021, however, as BNB was swept up in several major market upswings. In February, the price of Binance Coin reached an unprecedented $338. Things then cooled off for a month or so, but between March and April BNB soared from $234 to $598. It then rallied again in early May, hitting its all-time high of $686.31.
Given that it started life as what was essentially a joke, Dogecoin has seen some pretty impressive price runs over the years. Having been worth almost nothing upon launch, DOGE soared by some 300% after just two weeks, prompting investors to consider it as a legitimate cryptocurrency project afterall.
However, the initial price surge seemed to be something of a one-off and Dogecoin quickly dropped to prices under a penny. The only significant ‘blip’ in the DOGE price chart for this period came in January 2018, when prices went from $0.002 to $0.017 in a matter of weeks - growth equating to growth of around 750%.
After the brief uptick in 2018, the price of Dogecoin more or less flatlined for the next two years or so and things weren’t looking great for the project until a series of unexpected events took the markets by storm. Firstly, a consortium of Reddit users tried to replicate the infamous Gamestop saga, rallying together in an attempt to drive prices. This coincided with some well-meaning comments by Tesla CEO Elon Musk and sent the price of DOGE soaring to $0.082 in February 2021.
This sudden price surge saw Dogecoin re-establish itself and suddenly become arguably the most fashionable cryptocurrency on the market. Not only did DOGE sustain its new price, but in April of 2021, it saw its price surge by almost 1400%, reaching its all-time high of $0.73.
Whilst DOGE didn't hold this price, it is still consistently trading at a much higher value than at any time before 2021.
Dogecoin Vs Binance Coin: Future Predictions
The cryptocurrency market has seen some remarkable movement across 2021 and much of it has been completely unprecedented. As such, leading analysts have been forced to reconsider their approaches to forecasting and attempt to factor in unforeseen circumstances, such as those that saw Dogecoin’s remarkable resurgence.
However, as it stands, analysis of existing price data is still the best tool we have for predicting future price movement and it’s worth considering what top platforms see in the future for Binance Coin and Dogecoin.
Binance Coin has a pretty strong position thanks to its parent exchanges continued dominance, so it should come of little surprise that most platforms expect it to continue growing. DigitalCoinPrice, for example, has BNB hitting $927 in June 2022 - almost double its value at the time of writing.
WalletInvestor is also optimistic about what the next couple of years hold for Binance Coin. It suggests that BNB could reach as high as $997 before 2022. By January 2023, WalletInvestor expects Binance Coin to have reached an average trading price in excess of $1,000 per token.
Check Out: Binance Coin Price Predictions
Dogecoin has established itself as one of the most fashionable projects in the cryptocurrency space and, whilst trends like this are largely unpredictable, it seems many platforms believe that DOGE-mania is here to stay.
DigitalCoinPrice sees DOGE increasing to around $0.50 before 2022 is out. Come the end of 2023, DigitalCoinPrice has DOGE at approximately $0.76 per token.
The Economy Forecast Agency sees things slightly differently. After crunching the numbers, it has DOGE inscreasing by around 18% before the end of 2022. By 2024, the EFA expects Dogecoin to be worth an average of $0.44.
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Dogecoin Vs Binance Coin: What the Experts Say
Expert opinions should never be taken as gospel, as they are just that - opinions. However, they can be useful in painting a picture of what the wider business world thinks of particular cryptocurrency projects.
Undoubtedly, Dogecoin’s most high-profile supporter - or at least apparent supporter - is Tesla and Space X boss, Elon Musk. It was he who dubbed Doge as “the people’s crypto” and when with his imperative “release the DOGE” tweet he sent the price up by around 4% almost overnight.
Musk has helped put Dogecoin on the map, but more recently he has said that it is "Super important for Doge fees to drop to make things like buying movie tix viable" - responding to news that movie chain AMC might start accepting Dogecoin as a payment method for cinema tickets.
When it comes to BNB, prominent industry analyst Justin Bennett says he’s keeping an eye on Binance Coin, pointing out that if it stays above a key resistance level then it could see substantial growth. “BNB so far, so good. Working on $480. Get through that, and $530 is next.”
Meanwhile, another crypto analyst, Nicholas Merten, has cited Binance Coin’s “practically non-existent” fees on the Binance Smart Chain as a major advantage for the token and believes that it will go from strength to strength as long as the Binance Exchange continues to dominate.
Interestingly, Dogecoin and Binance Coin have a supporter in common - KISS legend Gene Simmons. The rocker has previously made substantial acquisitions of both DOGE and BNB. Cryptocurrency might not have much to do with rock n’ roll but Simmons is known in the financial world as a man with a good sense for investment opportunities.
Binance Coin Vs Dogecoin: Conclusion
Both Binance Coin and Dogecoin have the potential to offer significant returns in the coming months and both have shown themselves to more or less move in line with the wider market. Whilst they are both holding good prices at the time of writing, both have shown significantly higher values in the past.
Many investors may wonder if a meme coin like DOGE can really be a long-term rival to a project like Binance, with its new smart chain and industry-leading cryptocurrency exchange. On a technical level, perhaps not, but investors only need to look at Bitcoin’s continued dominance of the market to know that technical credentials don’t necessarily mean anything in the cryptocurrency space.
Of course, there’s always the option to diversify your investment portfolio and add both Binance Coin and Dogecoin. The latter probably represents the riskier option of the two but it also arguably has more potential for ‘mania’-driven price runs,
As always, nothing is guaranteed in the world of cryptocurrency investment and either token could end up losing you money. However, if you’re willing to take on the risk then both DOGE and BNB are big-name cryptocurrencies that appear to be poised for further growth.
How To Invest In DOGE & BNB Crypto Coins In 2022
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Is Dogecoin a better investment than Binance Coin?
On paper, Binance Coin has far more credentials than Dogecoin - not only is it the utility token of the industry-leading Binance Exchange, but it is also now found on the highly advanced Binance Smart Chain. However, Dogecoin is famous for its loyal community of supporters, who have shown they can have a strong influence on the market. Is DOGE the better investment? Maybe not, but it stands as a solid opportunity for any investor willing to take on a little risk.
Where can I buy cryptocurrency in 2022?
Coins like Dogecoin and Binance Coin will be found on most major exchanges, but if you’re new to the market then we’d highly recommend taking a look at eToro. It’s one of the leading names in the space and has an intuitive trading platform that’s perfect for both novice and experienced traders.
Will Binance Coin overtake Ethereum?
Binance Coin was the number 3 cryptocurrency behind Bitcoin and Ethereum for some time and many have speculated that the launch of the Binance Smart Chain would see BNB unseat ETH. However, at the time of writing it doesn’t look like this will be happening any time soon - especially as the Ethereum 2.0 upgrade is likely to strengthen its position.
Does Dogecoin have a future?
Many have written off Dogecoin in the past but, having been launched in 2013 and soaring into the top ten cryptocurrencies in 2021, DOGE has proven its longevity. As its community of loyal followers continues to grow and more platforms consider accepting DOGE as a payment method, there’s every chance that the original meme coin has a bright future ahead.