Baby Doge is among the most popular coins in the crypto space. It is also one of the newest coins, but this has not prevented it from making explosive gains and becoming one of the most traded meme coins in the market.
Baby Doge is among the many clones of Dogecoin. It was launched when Dogecoin was at its peak, but it only gained much of its value in July after a brief mention by Elon Musk. However, since it did not sustain the hype of the time, the altcoin has dipped too low levels.
It currently seems like Baby Doge is about to be the talk of the town again following major gains made during the past 24 hours. Data from CoinGecko shows that the meme coin has gained by around 12% during the past 24 hours. So, what is Baby Doge all about, and what has made it one of the popular meme coins in the cryptocurrency space?
What is Baby Doge?
Baby Doge is a clone of Dogecoin. Meme coins were initially created to make fun of Bitcoin, and Dogecoin was the pioneer of these crypto assets. Despite Dogecoin launching in the early years of the crypto market sector, it only gained popularity over the past year. Very few people knew about meme coins or even invested in them.
However, after Dogecoin made explosive gains and made many people wealthy, some developers started creating tokens similar to Dogecoin. The existence of meme coins is mainly dependent on hype, and therefore, the hype surrounding Dogecoin contributed to its rising value and led to the creation of other tokens that were looking to tap into the rapidly growing meme coin fan base.
Baby Doge is a cryptocurrency asset that was created by Dogecoin fans. The coin actually has a whitepaper that admits that its creation was inspired by Dogecoin. The whitepaper states that its objective is to solve the limitations that its “father” Dogecoin exhibits.
Some of the areas that Baby Doge seeks to improve on include offering fast transactions speeds and scalability. It also seeks to bring adorableness to the table, given that its logo includes the image of a Shiba Inu puppy.
One of the things that the Baby Doge developers worked on to make it different from Dogecoin is having a deflationary supply. Dogecoin’s supply is inflationary. This means that the number of coins that are in supply will continue increasing with time. This model has deterred many people from investing in it because they deem it to have lesser value in the future.
On the other hand, Baby Doge comes with a deflationary model. The supply of its tokens is expected to reduce with time, making it stand out from other meme coins that have trillions of tokens in supply. If it can withstand the tests of time, Baby Doge could actually be scarce with time. Considering the forces of demand and supply, scarcity will play an immense role in boosting the values of the token.
Baby Doge’s whitepaper, whitepaper, which has been dubbed as the “Woof Paper, talks about this deflationary concept of the coin, stating that the coin is “hyper-deflationary with the static reflection that rewards holders, so more baby doge coins are being automatically added to your wallet with each transaction.”
Why did Baby Doge become so popular?
If you analyse the crypto charts, you will see that many meme coins have become popular at some point. Every meme coin has its season. Sometimes, they can all rise together due to increased demand for such coins in the market. However, on most occasions, one coin rises by significant margins and outshines the others.
So, Bay Doge had its moment in July because of Elon Musk. Musk is a major meme coin supporter, but his allegiances lie with Dogecoin. He has repeatedly stated that his crypto portfolio is made up of Bitcoin, Ethereum and Dogecoin. At some point, he had even stated that Dogecoin would be accepted by Tesla as a means of payment.
However, due to the close relationship between meme coins, sometimes tweets made by Musk can fail to make Dogecoin rise and instead trigger gains in other meme coins. In July, Musk tweeted a phrase from a popular children’s song, stating, “Baby Doge doo, doo, doo, doo….” Following this tweet, Baby Doge made major gains and attracted a large audience.
It was also after this mention by Musk that Baby Doge rallied to a new all-time high. However, due to the high competition in the crypto space and especially among meme coins, Baby Doge was unable to maintain those highs, and it dipped to the current lows. Even with the recent bull market, it has still failed to move to the previous highs.
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Is Baby Doge better than Dogecoin and Shiba Inu?
While there are many things to consider when comparing these three, it is important to note that meme coins are highly volatile. Moreover, there are many clones in the market today, with some having similar names and only the ticker symbol differentiates them. Therefore, it is important to do your own research before buying these coins.
Dogecoin and Shiba Inu are older than Baby Doge. In fact, these two are the most popular meme coins and also the largest. Dogecoin and Shiba Inu are the only meme coins that have become listed among the top 10 largest cryptocurrencies by market capitalisation.
Therefore, if one evaluates the three coins based on value and market dominance, Shiba Inu and Dogecoin are at the top of the list.
However, as aforementioned, Baby Doge seeks to solve some issues that are presented by its predecessors. Some of these issues include having a deflationary mode. One of the reasons Dogecoin and Shiba Inu are having a hard time reaching $1 is the immense supply.
The supply of Dogecoin is inflationary, meaning that the number of coins increases with time. In Shiba Inu’s case, there are a quadrillion tokens in supply, which means that it is hard for these assets to match this supply to demand.
The other area where Baby Doge comes in as better than DOGE and SHIB is lowering the transaction fees. It seeks to offer scalability compared to other meme coins and make it a better alternative in transaction processing.
However, Baby Doge lacks any use case. Dogecoin has become a popular cryptocurrency used in settling payment transactions. Because of this utility, the demand for Dogecoin tokens has been high, and people are even motivated to buy because it can help them settle transactions in the real world.
In the case of Shiba Inu, its developers launched ShibaSwap, which allows SHIB holders to stake their tokens and then earn interest. This has also played a role in stabilising its prices because it deters holders from selling as they can generate passive income from their holdings through ShibaSwap.
Baby Doge is yet to make such notable gains. Its developers are yet to launch a platform that will give it use cases that go beyond speculation. Moreover, it does not have many holders that could make it have a use case in the real world. Therefore, while it claims to possess superior features to Dogecoin and Shiba Inu, it still has a lot to do to become a “Dogecoin killer.”