Litecoin and Dogecoin are fundamentally different kinds of crypto assets altogether. Still, at least a portion of the crypto community often compares them with each other. You can see this comparison in the X (formerly Twitter) comment sections, and crypto community forums. But is there any levity to the comparison? Can you compare Dogecoin and Litecoin using the same parameters? And most importantly, which one is better Litecoin or Dogecoin? Let’s put this to bed once and for all.
Key Takeaways
- Dogecoin has a more active and speculative community, while Litecoin focuses on reliable transaction use cases.
- Market Standing: Dogecoin ranks higher in market cap (7th) compared to Litecoin (23rd), but LTC has a significantly higher value per token.
- Litecoin is widely used for payments due to its speed and security, while Dogecoin’s applications are largely limited to community-driven activities and limited merchant adoption.
- Litecoin is better for real-world applications, while Dogecoin seems to have better community support.
Differences Between Litecoin and Dogecoin?
Before we proceed to the comparison, let’s refresh our memory about what Litecoin and Dogecoin are fundamentally.
Understanding Litecoin (LTC)
Litecoin is a digital asset created in 2011, as a faster, cheaper, and more scalable alternative to Bitcoin. It was created by Charlee Lee, who goes by the username “satoshilite” on X (formerly Twitter). One of the major advantages of Litecoin over Bitcoin was its Scrypt mining Algorithm, which made it possible for Litecoin to add a new block to the network every 2.5 minutes which is a huge improvement compared to the 10 minutes per block rate of Bitcoin.
Litecoin was also able to offer some useful features on its network such as the Segregated Witness (SegWit): which increased the number of transactions stored in a block, and the Lightning Network: which introduced off-chain transactions to boost the speed of transactions.
By offering quick and cheap services, Litecoin grew its market share slowly but steadily. In the early days, it was the second most valuable cryptocurrency by market cap just behind Bitcoin. But it all changed as the years went on, and more and more scalable altcoins were introduced to the market. Additionally, Litecoin had a faster block time, it was more susceptible to security risks such as double-spending. This also lends its hands to bringing down the market share of Litecoin.
However, Litecoin still has a loyal community base, and many cryptocurrency market observers have commented that Litecoin still is one of the most used cryptocurrencies for transactions, thanks to its fast block speed.
Understanding Dogecoin (DOGE)
Dogecoin is a cryptocurrency that was literally created as a joke. Two software engineers, Billy Markus and Jackson Palmer, were amused by the wild speculations about cryptocurrencies. They sarcastically created a digital payment system inspired by the popular meme of a Japanese dog, known as “Doge memes”. Ironically, the coin became a sensation in the cryptocurrency community, and slowly Dogecoin created a way for many more meme-inspired cryptocurrencies to come.
Similar to Litecoin, Dogecoin also uses a PoW (proof-of-work) consensus mechanism with a Scrypt hashing algorithm. However, Dogecoin has a seed of 1 block per minute, making it even faster than the Litecoin network. It is also interesting that Dogecoin does not have a maximum capped supply that most of the other cryptocurrencies including Bitcoin, and Litecoin have.
Dogecoin is heavily supported by Elon Musk, arguably one of the most influential personalities in the world. He has a significant stake in the cryptocurrency, and he has been implementing more utilities to the coin. For example, the Tesla car manufacturers owned by Musk allow users to use Dogecoin for certain products and features. So, it still has a loyal user base, though the token does not have a capped maximum supply.
Current Market Position of Litecoin and Dogecoin
Dogecoin and Litecoin are two of the most popular cryptocurrencies in the world. However, according to the current market capitalization, Dogecoin comfortably sits at the 7th position, while Litecoin has a long way to catch up from the 23rd position it is sitting at. That being said, if you are comparing the value per token, the narrative completely flips. Litecoin (LTC) is selling at around $70-$100 (mostly), whereas you can purchase a Dogecoin (DOGE) token with just $0.4034.
Community Support of Litecoin and Dogecoin
Both Litecoin and Dogecoin have strong and loyal community following. However, Dogecoin has the upper hand in here. The Dogecoin community is hyperactive in social media and forums such as X, Reddit, and Telegram. Additionally, the presence of a massive personality like Elon Musk also helps attract more interest to the coin. This strong community backing often results in price surges driven by speculations.
Real-World Applications of Litecoin and Dogecoin
Litecoin is highly adapted for many payment and financial services due to fast and cheap transactions. Many businesses and financial institutions use Litecoin for payments. Additionally, the recent technical developments that increased the hash rate to improve the security of the network also help improve the real-world application of Litecoin.
Dogecoin falls behind in this regard. DOGE is mostly used for community and charity activities. There are not a lot of real-world uses for Dogecoin other than a limited number of merchants supporting it, including Tesla.
Conclusion: Is Dogecoin Better than Litecoin?
Both Dogecoin and Litecoin have their own perks. The advantages will solely rely on what your intentions with the cryptocurrency are. If you are looking for a cryptocurrency that you can use for real-world transactions, then Litecoin is the better choice in most cases. However, if you find thrill in speculative price surges and price drops driven by the strong community, then you may go for Dogecoin.
