Shiba Inu could see a substantial increase in its price if it continues to mirror Ethereum’s performance, especially in the event that the ETH market cap surges by 200%.
It is common knowledge that price movements of major cryptocurrencies such as Ethereum often influence the trajectory of smaller tokens, such as Shiba Inu (SHIB).
Shiba Inu Correlation with Ethereum
Data from IntoTheBlock shows that Shiba Inu has a strong correlation with Ethereum, standing at 93% over the last 30 days. This suggests that Ethereum is more likely to influence Shiba Inu’s performance in the near term.
This could be considered an advantage or a disadvantage for Shiba Inu, depending on Ethereum’s performance. A rise in the price of Ethereum could result in a gain for SHIB. However, the price of the dog-themed token could fall during an Ethereum decline.
Impact of a 200% increment on Ethereum
We thought about the impact Ethereum could have on the price of Shiba Inu if its market cap increased by 200%. The ripple effect of this increase is expected to be significant for Shiba Inu.
As a reminder, Ethereum is currently trading at $3,298 per token. Ethereum remains the second-largest cryptocurrency, with a market capitalization of $389.77 billion at press time. A 200% increase in Ethereum’s market cap would bring it to $1.16 trillion, solidifying ETH’s position as the world’s second-largest cryptocurrency.
The impact of this increase will also be seen on the price of Ethereum, which will reach $9,702 per token. This surge could trigger a rally in the broader crypto market, driving up the prices of various assets like Shiba Inu.
Shiba Inu price if Ethereum market cap climbs 200%
According to correlation data from IntoTheBlock, Shiba Inu’s performance largely mirrors that of Ethereum, so its market cap could grow proportionally by up to 200%.
At press time, Shiba Inu has a market capitalization of $12.75 billion, making it the 15th largest token in CoinMarketCap’s global cryptocurrency rankings. It is currently trading at $0.0000207 per token. If Shiba Inu’s market capitalization increases by 200% proportionally to that of Ethereum, its valuation could reach $38.25 billion. This could push SHIB price to $0.00006492, close to its previous ATH of $0.0008845.
Potential increase in SHIB to $0.00006
Several crypto players, including the team behind the Shiba Inu ecosystem, have predicted a potential rise in SHIB to $0.00006 territory.
In November, Shiba Inu ecosystem marketing manager Lucie highlighted that SHIB is “doing well,” predicting that the asset could rally back to $0.00006861.
Additionally, pseudonymous market watcher TSLA Tracker expressed admiration for SHIB’s December price pattern, noting that the token is preparing for a rise to $0.00006937.
Earlier this month, a popular analyst who goes by the pseudonym “Strong” on weekly asset chart.
Although Ethereum price movements can have a significant impact on Shiba Inu’s performance, certain factors such as market sentiment, burns, and utility will determine the extent of SHIB’s price increase.
DisClamier: This content is informational and should not be considered financial advice. The opinions expressed in this article may include the personal opinions of the author and do not reflect the opinions of The Crypto Basic. Readers are encouraged to conduct thorough research before making any investment decisions. Crypto Basic is not responsible for any financial losses.
