Ethereum vs Shiba Coin: Which Crypto Should You Buy In 2022

Last Updated January 28th 2022
17 Min Read

On the surface, Ethereum and Shiba Inu couldn’t be more different - one is an established leader in the world of blockchain whilst one was effectively set up to usurp another token - Dogecoin - which itself was originally intended as a joke.

But as developers at Shiba continue to expand the platform into a multi-faceted DEX with additional tokens and even an NFT platform, is it possible that this new upstart could one day rival Vitalik Buterin’s seemingly unstoppable smartchain?

As the world of cryptocurrency continues to evolve and offer ever more complex interactions, it seems that the smarter and more scalable a network is, the better its chance of survival. Ethereum has been dogged by congestion problems recently, having struggled to keep up with the explosion of DeFi.

Similarly, projects limited to value exchange, such as Bitcoin, Litecoin and Dogecoin are increasingly seeming out of date as they struggle to keep up with the latest advancements. 

So does this mean that a new platform like Shiba, launched in 2020, is better suited to dealing with the challenges posed by the modern cryptocurrency sector?

In the following review, we’ll consider the case of Ethereum vs Shiba Inu and find out what the potential of each token is when it comes to mid to long term investment. 

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Shiba Inu vs Ethereum - An Overview

Ehtereum vs Shiba Inu

At first glance, Shiba Inu and Ethereum might appear to be polar opposites. Whilst Shiba (SHIB) started life as a self-proclaimed ‘Dogecoin Killer’, Ethereum is the industry’s go-to smart chain and has been for several years. However, if we dig beneath the service, we find there are actually some similarities between the projects. 

Ethereum

Background

When it launched in 2015, Ethereum was hailed as the first of a new generation of blockchains, promising far more adaptability and functionality than those which had gone before. Whereas the likes of Bitcoin and Litecoin were limited to being means of value exchange, Ethereum effectively offered the possibility of entire financial ecosystems. 

At this stage, Ethereum has established itself as the second biggest cryptocurrency behind Bitcoin and is the leading platform for DeFi. By offering an environment in which developers can utilise smart contracts to create ever more complex projects, Ethereum’s influence on the world of cryptocurrency is hard to overstate.

The fact that so many projects - including Shiba Inu - are built on Ethereum is a big factor in its market dominance, as interoperability is becoming increasingly important. Naturally, it's easy for one exchange built on Ethereum to interact with another.

The Ethereum 2.0 upgrade is also being implemented, which will see the platform improve its scalability and modernise its existing protocols. 

Transactions and Speed

The world of cryptocurrency looked very different when Ethereum first came to prominence and its block creation time of 10 to 20 seconds seemed a major step up at the time, considering Bitcoin was plodding along at ten minutes per bloc. But fast forward to 2021 and the demands placed upon Ethereum have changed dramatically. 

In fact, the demand placed upon the Ethereum network by the various DeFi projects it hosts has caused issues in recent times, with serious congestion reported in the latter half of 2020 and in 2021.

The Ethereum 2.0 upgrade will, in theory, solve this issue. Eventually, Ethereum will shift from a proof of work consensus mechanism to proof of stake, which will make it more efficient and less resource-intensive. It has been said that, once the protocol upgrades are complete, Ethereum will have a much faster transaction rate, which will enable it to support the continued growth of DeFi. 

Supply and Demand

Despite its myriad applications, the value of Ether is still hugely influenced by supply and demand. Supply is an especially important consideration when it comes to cryptocurrency, as effectively new tokens can just be created out of nothing.

Many projects have an in-built deflationary effect - for example, Bitcoin has a total supply cap and diminishing miner reward. Ethereum, on the other hand, has no supply cap and is technically an inflationary coin. 

The inflation rate of Ethereum is, however, tightly controlled and some 18 million tokens are released into the ecosystem each year. This ensures that there is always enough Ether to support business activities and maintain the network, whilst also ensuring relative inflation stays under control. 

With so many cryptocurrencies and DeFi projects operating on the Ethereum network, it will come of little surprise that demand for Ether remains high. 

Check Out: Pros and Cons of Investing in Ethereum

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Shiba Inu

Background

Shiba Inu might seem like a bit of a novelty to seasoned investors, riding on the coattails of another token that itself was set up as something of a joke. However, there might just be more to the Shiba project than meets the eye...

SHIB itself is actually built on the Ethereum platform. It was initially outlined in a whitepaper authored by the pseudonymous Ryoshi - reminiscent of Bitcoin’s Satoshi paper. Many initially dismissed it as a flash in the pan, but since its launch, Shiba has gradually evolved into a complete decentralised ecosystem.

The project now offers two additional tokens, BONE and LEASH, as well as its own digital exchange. SHIB is the token that underpins operations and can be used to pay for services across the Shiba suite of services. 

The additional Shiba projects give the token a better chance of longevity and could see it establish itself as the industry’s first ‘meme DEX’. 

Transactions and Speed

As we’ve noted, SHIB is actually built on the Ethereum blockchain, so in terms of block creation times, there is little difference between them. It also means that Shiba is dogged by many of the same issues as with Ethereum, but will also benefit hugely from the Ethereum 2.0 upgrade.

Compared to other cryptocurrencies, however, SHIB has a reasonably favourable transaction speed and is certainly viable as a means of digital payment. Once the Ethereum protocol upgrades are complete, SHIB will certainly be more efficient than its nemesis, Dogecoin.

Supply and Demand

Shiba Inu had an initial supply cap set at 1 quadrillion. However, the Shiba developers ‘gifted’ a large proportion of it to Ethereum’s Vitalik Buterin, who promptly offloaded it and insisted he didn’t want a significant holding in the project.

It should be noted that the developers behind the Shiba project intend the coin to remain a viable means of value exchange. As such, it has a remarkably high circulating supply of 500 trillion and is an inflationary coin rather than deflationary.

Keeping the supply of SHIB high ensures there will always be a sufficient amount for everyday transactions and its userbase can grow without having a significant impact on the overall value of the token.

Read Also: Is Shiba Inu Safe to Invest In?

Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Shiba Inu vs Ethereum: Which Is The Better Investment?

Despite the Shiba Inu project evolving to include a decentralised exchange and an NFT artist incubator, there’s no real case for its being in any way superior to Ethereum from a technical standpoint. This doesn’t mean, however, that SHIB is the lesser of the two when it comes to investment.

Ethereum Vs Shiba Inu: Price History

A look back at the previous price movement is the best place to start when weighing up Shiba vs Ethereum from an investment perspective. As we shall see, each token has demonstrated that it can undergrow significant growth.

Ethereum

Ether was worth very little in its first few months of trading. It wasn’t until 2015 that the price of ETH was consistently above that of the US dollar, trading between $0.40 and $1.80 across the year.

Things then took an upward turn in January 2017, with Ethereum experiencing a sudden bull market that saw its token price reach $10. This was a sign of things to come. By summer of that year, ETH had reached $341, before skyrocketing at the end of the year to reach an impressive $1,345 by the time 2018 came around.

Of course, we all know that the cryptocurrency ‘bubble’ burst in 2018 and Ethereum suffered significant downturn, dropping to just $89 per token by December of that year. Things then remained subdued for much of 2019, but Ethereum started to recover by the end of the year ad had regained $200 by January 2020.

Then came 2021. The first half of the year was one of the most remarkable in the history of cryptocurrency and most major coins - including Ethereum - underwent significant growth. There were bulls in May and September, but it was the beginning of November that saw ETH reach its new all-time high of $4,891.

Shiba Inu

Shiba Inu launched in 2020, so naturally, there isn’t a great deal of data to consider when it comes to price history. The token is notable for its remarkably low price - launching at <$0.00000001 - with the hope that it would soon generate significant growth. 

Things remained fairly unremarkable for a while, with very little activity within the first few months of trading. Once again, it was the market-wide upswings of 2021 that helped to propel SHIB into the limelight. 

The token price went from $0.0000001 to $0.0000036 in April. This might sound like an insignificant sum, but investment is all about returns and this actually represents several thousand percent growth. May saw SHIB surge again, reaching a high of $0.000038 and in October hit its all-time high of  $0.000088, establishing it as a genuine contender for the meme-coin crown. 

Ethereum Vs Shiba Inu: Future Predictions

Of course, if you are weighing up Ethereum vs Shiba Inu as investment opportunities, then there is only so much value in considering price history. What we are really interested in is what could happen in future. To build an idea, it’s worth checking what leading analysts are predicting for Ethereum and Shiba. 

Ethereum

It seems that most analysts are dismissive of Etheruem’s recent congestion issues and are confident that ETH will continue to grow in the coming years. DigitalCoinPrice, for example, believes the token will reach $3,400 in 2022 and sustain growth going into 2023. It then predicts ETH will hit the $4k mark in 2024 and continue the upward trend into 2025. 

Meanwhile, WalletInvestor predicts that Ethereum will go past $5.5k by the end of 2022 and continue to inch up throughout the year, reaching $8,000 in 2023. WalletInvestor’s technical analysis also has ETH breaking the $12.5k barrier in 2024.  

Of all the Ethereum price predictions we found, TradingBeasts was the most reserved. It actually has ETH decreasing in value trading between $2,105 and $3,096 by the end of 2022.  

Read More: Ethereum Price Predictions

Shiba Inu

It seems that many analysts have faith in the Shiba Inu project and its plans to become a contender in the world of DeFi. DigitalCoinPrice has SHIB increasing by almost 38.89% before 2022 is out, potentially reaching a trading price of $0.000028 by December. It then predicts that SHIB will continue to grow and investors could see returns of 45% by 2024.

Elsewhere, WalletInvestor believes that Shiba will get close to its all-time high by the end of 2022, then continue on an upward trajectory across much of 2023 and 2024. Going into 2025, the platform believes that SHIB will be trading at an average of $0.00016.

Finally, TradingBeasts is also predicting growth for SHIB. It has the token up by around 90% by December 2022, 2023 sees the price move slowly upward. By 2024, SHIB is expected to reach an average trading price of $0.0000441, representing a growth of 113% on today’s price.

Don't Miss: Shiba Inu Price Predictions

Shiba Inu Vs Ethereum: What the Experts Say

Whilst we should never take expert opinions as financial advice, they are useful in gaining insight into how key figures from the world of business and finance - both traditional and digital -  see particular projects. 

There’s a surprising amount of optimism surrounding Shiba, as many appreciate the project’s lighthearted approach. “SHIB coin is a meme coin and embraces that,” says head of research and strategy at cryptocurrency exchange AAX, Ben Casin.  

Citing the Reddit driven price runs of Shiba’s forebearer, DOGE, he added that “the hype around meme coins such as Shiba…is not a financial, but a social phenomenon.” 

Meanwhile, Sam Bankman-Fried, boss at cryptocurrency derivatives exchange FTX has commented:  “I’d be surprised if SHIB overtook DOGE, but anything can happen!”

Then there’s Ethereum which, lets face it, will always have its supporters. Recently, Galaxy Digital’s Mike Novogratz has described  ETH as a “currency of culture” and predicted that the NFT trend is likely to continue unabated, with Ethereum arguably being the ideal platform for their creation. 

Meanwhile, Messari’s Ryan Selkis has been quoted as saying that “Ethereum that has taken flight as crypto’s most important platform… one that could power an entirely new financial system, and a more open, resilient internet.”

Is It Better To Invest In Shiba Or Ethereum?

Both Shiba and Ethereum are high-risk investments, so before you invest, make sure you are willing to take the high level of risk and volatility.

While neither of these cryptos is considered as a safe investment, Ethereum may carry less risk than Shiba because it has a longer track record and better name recognition. However, Shiba may have more opportunities for growth over time.

Shiba Inu Vs Ethereum: Conclusion

In reality, comparing Shiba Inu vs Ethereum is no mean feat. Ethereum is an established project that has built such momentum that it is now the preferred platform for most emerging DeFi projects - including Shiba itself. 

However, whilst Shiba Inu may appear to be less serious than many projects out there, this could prove to be its strongest selling point. As we have seen with Dogecoin, a loyal following can have very positive effects on price performance and Shiba is certainly moving in the right direction in this respect. 

Most would argue that Ethereum is a much more stable investment - and they’re probably correct - but this, in turn, means that a riskier investment, such as Shiba, could actually complement ETH as part of a diversified portfolio. 

How To Invest In Shiba And Ethereum

So we don’t really need to pit Ethereum against Shiba Inu when it comes to investing, but if you want to buy either coin you will need to find a reliable broker that can give you access to the cryptocurrency market. 

We highly recommend eToro, as it has a great reputation and is one of the most approachable trading platforms you’re likely to find. There are also plenty of information sources available on the website to help you plan your investment strategies. 

It takes just a few minutes to open an account with eToro and you’ll can trade a good selection of leading cryptocurrencies - including ETH and SHIB. 

eToro – The Best Platform To Buy Cryptocurrencies

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Crypto asset investing is highly volatile and unregulated in some EU countries. No consumer protection. Tax on profits may apply.

Ethereum Vs. Other Cryptocurrencies:

Ethereum vs Bitcoin

Ethereum vs Cardano

Ethereum vs Tron

Ethereum vs Ripple

Ethereum vs EOS

Ethereum Vs Ethereum Classic

Ethereum vs Dogecoin

Ethereum Vs Shiba Inu - FAQ

Should I buy Ethereum or Shiba Inu?

It’s difficult to compare Ethereum and Shiba Inu when it comes to investment. Realistically, Ethereum is likely to continue to dominate so long as it’s the go-to choice for DeFi. Meanwhile, SHIB’s future rests largely on its ability to cultivate a Doge-esque following. Both coins have the potential for growth, but ETH is arguably the more stable option. 

Can I double my money with Shiba Inu?

If analysts like TradingBeasts and WalletInvestor are to be believed, then it’s very possible that SHIB could double its value by as early as 2023. Of course, this is all speculative and nothing is guaranteed in the world of cryptocurrency. 

How do I  buy cryptocurrency?

If you want to start investing in cryptocurrency then you’ll need to find a broker that gives you access to the market. One of the leading providers is eToro and we’ve found it is ideal for those new to cryptocurrency as there are plenty of learning resources on the website.   

Is Shiba Inu a good investment?

Many investors see Shiba Inu as something of a joke - especially those from the world of traditional finance. However, it’s essential to understand that branding and community can have a significant influence on a cryptocurrency’s price and SHIB could well be the ‘next big thing’. Whether you choose to invest or not, Shiba is certainly one to watch in the coming months.  

Does Ethereum still have room to grow?

Ethereum seems to have held the number 2 spot forever, but as rivals like Cardano close the gap, many wonder how long Buterin’s brainchild can hold on. Realistically, Ethereum is still the go to project in the DeFi space and the Ethereum 2.0 upgrade is only going to strengthen its position. As such, most analysts are predicting substantial growth in Ethereum’s future.