Dogecoin vs. Stellar | Choose the Best Investment

This article compares two popular crypto coins, Dogecoin and Stellar Lumens. As of August 2022, both of them have their place in the top 30 cryptocurrencies by market cap. These coins are popular but for different reasons. Stellar Lumens (XLM) is part of a network of the same name. This network aims to bridge multiple crypto assets with fiat currencies and connect all possible payment operators. Dogecoin is a different thing. In general, it is just a little tweaked Bitcoin clone. Most experts agree that technology-wise, this coin doesn't offer anything new or solid. It is popular just because of the strong community around this crypto and is supported by the likes of Elon Musk, Vitalik Buterin, and other influencers. Read this article to learn about the strong and weak sides of these coins and see which one of them meets your requirements.

1. What Is Dogecoin?
2. What Is Stellar Lumens?
3. Dogecoin vs. Stellar Lumens (table)
4. Dogecoin vs. Stellar Lumens (details)

What Is Dogecoin?

Dogecoin is the only cryptocurrency with a multi-million market cap with no official dev team or budget. For years, the coin has been promoted solely by Dogecoin enthusiasts. Numerous flash mobs, charity initiatives, memes, and celeb support have been successfully driving the price and popularity of Dogecoin. 

This cryptocurrency was started as a joke and a parody, but somehow Dogecoin quickly gained notoriety. Dogecoin forked from Litecoin in December 2013. Dogecoin utilizes PoW so that it can be mined, and it has no supply limit. Dogecoin has no features on top of serving as a means of exchange. 

As of August 2022, DOGE's market cap is the 11th most significant market cap in the crypto industry. It amounts to $9 billion. The popularity of Dogecoin triggered a series of DOGE clones. Some of them perform pretty well; for instance, as of August 2022, the Shiba Inu coin has the 13th largest market cap.

What Is Stellar Lumens?

Stellar Lumens (XLM) is a native coin of the Stellar network. Stellar works as a platform aimed at connecting different cryptocurrencies, fiat currencies, finance institutions, CBDCs, and payment processors for swift exchange. 

XLM is used as an intermediary currency for transactions on Stellar. The exchange is decentralized. Stellar has a fixed inflation rate which is 1%. Due to cheapness and ease of use, XLM helps to make cross-border transactions and exchange currencies to unbanked populations or people living in areas where banks are not that convenient and cheap. Another goal is to provide connectivity between financial institutions.

The project was launched in 2015 by former Ripple employee Jed McCaleb. The dev team has created a unique consensus protocol for the project. It is called the Stellar Consensus Protocol.

Dogecoin vs. Stellar Lumens (table)

Dogecoin vs. Stellar Lumens (details)

The price and the market cap 

As of August 2022, Dogecoin has a much larger market cap than Stellar. The latter has a market cap of $3 billion, while Dogecoin's capitalization exceeds $9 billion. As for the price, XLM costs twice as much as DOGE. The coins' prices are 12 cents (Stellar Lumens) and 6 cents (Dogecoin). The difference is maybe not that crucial, considering that both currencies are among the industry leaders. Stellar price is more volatile. Dogecoin depends on external promotion more heavily.

Popular markets

The exchanges where people trade XLM and DOGE the most are nearly the same for these coins. We can add that Dogecoin seems to be better presented on the exchanges thanks to its viral popularity in the crypto community. Many people seek ways to buy or sell DOGE. Some people even try to mine it.

Platform

Initially, Stellar was created on top of Ripple. However, now it has a unique code. Dogecoin is a low-effort digital asset that cannot impress us with its technology side. It is just a Litecoin fork.

Consensus mechanism

Stellar has a unique approach toward consensus. We appreciate the custom protocol created by Stellar's dev team.

Products

Dogecoin has nothing to offer on top of being a means of exchange. Stellar is more multi-purpose.

Use cases

Dogecoin is used for tipping content creators on Twitter and Reddit. The coin was used for several charity actions. Primarily, the coin is used for trading. Also, it is accepted as a payment method on some web shops. Stellar is used as money, too, but its use cases spread much broader than that. Stellar can be used to give opportunities to people who cannot use regular bank services and widen the functionality sets of FinTech platforms by adding crypto assets. It makes Stellar an important multi-purpose network helping big players on par with ordinary end-users.