Dogecoin paved the way for meme coins to become valuable on the market. Its strong community engagement coming from meme lovers and investors made it easier for the coin to reach the spotlight. Although its value increased after the release, Dogecoin became popular after Elon Musk tweeted about it.
The first post on the cryptocurrency increased the Doge price by 300% in a few hours. Other tweets followed, pushing prices to the moon and making Dogecoin a highly valuable coin on the market. However, between these moments, the Doge price returns to normal or drips even lower, depending on market conditions, making it highly volatile.
So, if you’re looking for a less popular alternative for Doge or simply want to diversify your portfolio for more stability, here are some great coins to consider.
Shiba Inu
Shiba Inu is a meme coin similar to Dogecoin, but it’s not as popular. It was released in 2020, so it’s one of the new cryptocurrencies. The Shib Army is entirely run by the community to reach complete decentralization. The Shib Army is responsible for the blockchain’s safety and efficiency.
The coin is based on the ERC-20 Ethereum token, which allows it to use smart contracts to create decentralized financial products. The Shiba project has also entered the DeFi space, allowing developers and artists to leverage its features for NFTs, for example.
The Woofpaper (white paper) states that Shiba is oriented towards “collective decentralization,” which is also one of the reasons it started without funding or direct leadership. At the same time, the community always finds ways to donate to social causes.
For example, it collaborates with Amazon Smile to gather funds for the Shiba Inu Rescue Association, which helps dogs.
Love Hate Inu
Love Hate Inu was created to support vote-based rewards. Therefore, users on the platform who vote on different subjects like sports will receive tokens. This helps boost community engagement and also allows investors to diversify their portfolios with a unique cryptocurrency project.
Participants stake their tokens to vote in polls, a system aimed against spam and manipulation. Those who stake and vote for longer periods receive more voting power and tokens. Love Hate Inu has already started gaining momentum by collaborating with brands and supporting sponsored polls.
In the future, Love Hate Inu will integrate its voting system into metaverse experiences. This is an essential step for the crypto community as it shows that meme coins have real value and can contribute to global adoption.
Pandoshi
Moving on from dogs, we’ve got the Pandoshi meme coin, which aims to improve the DeFi ecosystem through innovative projects. The community-driven initiative focuses on networks, DEXs, and wallets.
For example, the Panda Chain is a proof-of-stake layer 2 blockchain solution used to reduce the circulation supply of the PAMBO token by burning it. The Panda Chain uses an array of mechanisms and supports more ERC standards to provide network scalability and privacy.
Pandoshi also has a non-custodial wallet, a virtual prepaid card, and an educational program.
Pandoshi includes a collection of 10,000 NFTs offered free of charge to users in four tiers of rarity. The lucky members will be rewarded based on their contribution to Puzzles and other games on the platform. Pandoshi Legion is also a team of people responsible for graphic development, marketing, and technical development who can receive these NFTs.
How to ensure portfolio diversity with meme coins
While investing in meme coins comes with risks and uncertainties, they support portfolio diversity. Since the community is so vital for the meme coin sector, it’s best to cultivate their knowledge and participate in as many groups as possible to understand their appeal.
The meme coin community helps monitor the market, especially since some are passionate about meme coins. Doge is one of the most popular, but new meme projects are always welcomed and supported in these communities.
When it comes to portfolio diversification, what you can do is choose coins based on:
- Market capitalization. High market cap coins are the most stable, such as Bitcoin, while low market caps tend to be risky and volatile, even if they offer rapid growth opportunities;
- Liquidity. Measuring a coin based on the easiness of buying and selling it makes it liquid, so you can better capitalize on price fluctuations and vice versa;
- Innovation. Coins that develop continuously and seek innovative solutions are more valuable than those with no change in sight;
Meme coins or stablecoins?
While meme coins are based only on community engagement and entertainment popularity, stablecoins are the exact opposite since they’re usually pegged to the US dollar for more stability.
Stablecoins are safe from volatility and useful for everyday transactions and trading on exchanges. They also have features of DeFi integration, liquidity, and hedging against falling markets.
However, stablecoins also pose various risks, including de-pegging. This means that a lack of trust in the market can lead to a coin’s collapse, which happened before with TerraUSD. At the same time, stablecoins are usually centralized since they’re backed by official fiat currencies, so investors have to trust the issuer.
Meme coins, on the other hand, provide high returns and a low entry barrier, making them affordable and valuable. The community engagement is the perfect ecosystem for both beginners and experienced investors, and the field’s innovation and experimentation make meme coins interesting.
However, meme coins have limited liquidity due to smaller active trading communities. The lack of transparency might be due to anonymous creators of famous projects, adding to the high volatility.
What do you think about Dogecoin alternatives?
Dogecoin is the most important meme on the market, as it established its power and value among competitors.
Still, as it progressed, challenges of volatility and market sentiment made it unreliable at times, so investors might seek alternatives to add to portfolio diversification, including Shiba Inu, Love Hate Inu, and Pandoshi.
These coins provide newness to the meme market and offer real use cases, such as donation and education, but also improve the DeFi and DEX ecosystem.
