Both XRP and Doge have strong communities and almost fanatic fans. I have been looking into these projects lately, trying to figure out which is the best one between XRP and Dogecoin.
Even though Dogecoin has performed much better in recent years, XRP is the better long-term hold due to Dogecoin lacking a clear use case. Ripple has an ecosystem of banks and institutions using their services, backing the value of the XRP token.
Let’s get deeper into this, and really figure out which is better of the two coins:
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A Deeper Look Into The Projects Of XRP and DOGE
XRP was incorporated in 2012, and its primary objective was to provide “safe, fast, and almost free worldwide money transactions of any amount without recurring billing.” The system accepts payments in fiat money, cryptocurrency, commodities, or any other units such as reward points or cellular calls.
Ripple is a coinage that solely exists in its own infrastructure. A coin is made up of a million pieces known as drops. Ripple’s activities began with the issuance of 100 billion XRP, and system restrictions prevent additional issuances.
Dogecoin advertised itself as a “fun” variant of Bitcoin, complete with a Shibu Inu (Asian dog) as its symbol. The informal appearance of Dogecoin fit the atmosphere of the emerging cryptocurrency world. Its scrypt algorithm and limitless supply made it an appealing candidate for a quicker, more flexible, and consumer-friendly counterpart of Bitcoin.
Dogecoin is an “inflationary coin,” whereas cryptocurrencies such as Bitcoin are deflating due to a cap on the number of coins that may be generated.
Similarities between XRP and Dogecoin
Markets. Each of these coins may be purchased, sold, traded, and staked on reputable cryptocurrency exchanges across the world.
Native token backed. The Dogecoin network and Ripple have their native tokens named Doge and XRP respectively.
Expandable and autonomous. Both of these projects deal with the issue of crypto sustainability and decentralization.
Reliability. Both of the coins have proven themselves to be reliable and good at different points in time but overall, XRP has the edge over DOGE.
Differences regarding XRP (Ripple) and Dogecoin
Usability. Where Dogecoin is a virtual currency designed to be used to pay for products and services, Ripple is a financial settlement and repatriation system designed for banks and financial networks.
Goals. The goal for XRP is to create a method for straight transfer of ownership (e.g., money, gems, etc.) that resolves in near real-time and is a faster, more visible, and safer option to transmit methods used by banks today, such as with the SWIFT billing system. However, Doge is used as a store of value or means of transaction.
Coin Fundamentals. Dogecoin is built on blockchain technology, but Ripple utilizes a consensus mechanism database with a system of verifying machines and cryptocurrencies called XRP instead (sometimes referred to as Ripples).
Funds Management. Ripple has implemented a new feature in which the firm releases $1 billion of its XRP holdings to itself each month using a smart contract mechanism (escrows) to assist fund business operations, incentivize consumers, and sell to approved investors. Any leftover bits will be returned to escrow. Doge has no such features.
Maximum Supply. XRP has a max supply of 100 billion coins whereas Doge does not have any theoretical supply limit.
Mining. Ripple cannot be mined, however, Doge can be mined and miners are rewarded 10,000 DOGE for every block.
Tokenomics and Price History Of Ripple (XRP) and Dogecoin (DOGE)
- Ripple is more than simply a cryptocurrency; it is a corporation. Ripple Labs Inc employs approximately 500 full-time people worldwide. Ripple’s team comprises advertising, public relations, and other industry specialists. Doge lacks these features as a project, and thus, it looks more incomplete.
- The yearly issuance of 5 billion Doge equates to an inflation rate of 3.87 percent, which is quite modest when compared to other inflationary cryptocurrencies. As time passes by, that percentage will fall even more as the new 5 billion Doge will represent a decreasing proportion of the entire supply.
Below you find two charts showing the historical performance of the two coins going back to the beginning of 2020.
We see that Dogecoin has surged over 13,000% since the beginning of 2020. At the same time, XRP has “only” increased 535%:
You can read this data in two different ways:
- Dogecoin is a much better investment because it yileds higher returns.
- XRP is a much better investment because Dogecoin has already pumped.
Personally, I believe the last one is more right than the first one…
Conclusion: Dogecoin has performed best, but XRP might win in the end
Dogecoin has outperformed XRP with a factor of 25x in the last 1.5 years. However, XRP has a fundamentally stronger case than the meme coin. This fundament might be enough to kickstart a new rally as we saw in 2016 and 2017 of XRP, sending it into the tens of dollars range.
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