Bitcoin vs Dogecoin – Which Crypto Offers the Best Returns in 2024?

• Despite fundamental differences, Bitcoin and Dogecoin share a strong correlation
• The short term trajectory indicates an increase in the price of DOGE and a decrease in BTC

Few cryptocurrencies have survived a decade of existence. And yet, Bitcoin (BTC) and Dogecoin (DOGE) have been on the market for over 10 years. Despite this, few people are aware of the difference between the two.

In this article, AMBCrypto will dive into the similarities and differences between Bitcoin and Dogecoin. You will also learn about their respective actions on on-chain prices and conditions.

Bitcoin vs Dogecoin: Who Takes the Crown?

Bitcoin and Dogecoin have a few things in common. Most notable is that they both use the Proof-of-Work (PoW) consensus mechanism.

This similarity explains why blockchains are among the top projects that still stick to mining, instead of adopting the use of validators. However, the main difference between them is their offering.

While Dogecoin’s supply is unlimited, Bitcoin’s maximum supply is 21 million coins, making it a scarcer asset than DOGE. At press time, DOGE was changing hands at $0.12.

This is a 38.19% increase on a year-to-date (YTD) basis. As for Bitcoin, it was valued at $61,579 – an increase of 39.42% over the same period.

When we evaluated the prices of the two cryptocurrencies, we noticed that there was a strong correlation. For example, according to Macroaxis, the Bitcoin vs Dogecoin correlation stood at 0.98.

Source: Macroaxis

The values ​​of the correlation coefficient range from -1 to +1. When the value is close to -1, it means that prices diverge and rarely move together.

However, a coefficient close to +1 implies the opposite. Therefore, the correlation between BTC and DOGE showed that if you invested money in both coins since the beginning of the year, you would get almost the same returns.

However, Bitcoin returns would be slightly higher. So the question is: will prices continue to move in the same direction? Let’s look at it.

DOGE Takes Over This Time

To verify this possibility, AMBCrypto analyzed the In and Out of Money Around Price (IOMAP). This indicator, provided by IntoTheBlock, marks support and resistance levels.

To do this, it groups purchased addresses within a certain price range. Some of them will be in profit and others in loss. Generally, the larger the address group, the stronger the support or resistance provided.

At press time, AMBCrypto noted that a sell wall appeared at $62,134. At this point, 1.64 million addresses have purchased 759,670 BTC. On the other end, 755,240 addresses purchased 445,280 BTC at around $60,793.

Source: IntoTheBlock

Given the difference, it is likely that Bitcoin faces further decline. If so, the coin is likely to fall below $60,000. So now may not be the best time to buy BTC.

For Dogecoin, it was a completely different scenario. Unlike Bitcoin, DOGE had its support at $0.12. This is because 86,480 addresses bought 6.87 billion DOGE at the indicated price.

This is over 33,520 addresses that purchased 717.77 million coins at a higher value. With this situation, DOGE could well trade at a higher value in the short term.

Source: IntoTheBlock

Realistic or not, here is DOGE’s market cap in BTC terms

Additionally, the possible target for Dogecoin is between $0.13 and $0.15. Simply put, memecoin could provide a better return than Bitcoin in the short term.