Shiba Inus 10x Potential: Factors Driving a Bullish Surge
- Historical Rally Potential: Humphries believes Shiba Inus 2021 success could reoccur, fueled by retail investor interest in OG memecoins like SHIB.
- Brand Strength and New Investors: SHIBs brand recognition may attract new investors, supporting its path toward a $100 billion market cap.
- Shibariums Burn Mechanism: Shibariums supply reduction process could boost SHIBs demand, while SHIBs 81% correlation with Ethereum may amplify gains during ETH rallies.
In a bold prediction, renowned crypto analyst Zach Humphries has outlined a series of factors that could drive Shiba Inu (SHIB) to a market cap of $100 billionan increase of 10-fold from its current valuation. This would place SHIBs price at an eye-catching $0.000171, a 899% surge from its value at the time of his tweet.
Humphries, known for his strategic insights into the memecoin market, has consistently voiced optimism about SHIBs potential. Back in June, he hinted at the possibility of SHIB reaching a $100 billion market cap. In his latest update, he has expanded on this vision, providing reasons that he believes could propel SHIBs massive price surge.
Humphries draws parallels between SHIBs current setup and its meteoric rise in 2021. Back then, Shiba Inu experienced a stunning rally, turning minor investments into life-changing sums for early adopters. According to CoinGecko, a modest $12 investment in SHIB grew to a staggering $1 million, reflecting an 8,424,203% increase that year.
While Humphries does not predict a repeat of SHIBs 2021 performance, he argues that its poised for another wave of growth, particularly as retail investors re-enter the market. He emphasizes that OG memecoins like SHIB are likely to benefit the most, given their history and established reputation in the crypto community.
Shiba Inus Brand Strength in the Memecoin Space
A critical aspect of SHIBs appeal, according to Humphries, is its strong brand recognition. Among meme-based assets, Shiba Inu stands out, largely due to its dedicated and passionate community. This robust user base has kept SHIB in the spotlight, positioning it as a viable choice for new investors looking for established assets in the memecoin sector.
Humphries believes that the brands recognition will play a pivotal role, especially as first-time crypto investors seek well-known tokens. The analyst anticipates that this influx of new investors could help SHIB reach a $100 billion market cap, especially if demand rises amidst bullish trends in the broader crypto market.
Humphries also highlights Shibarium, Shiba Inus Layer-2 blockchain, as a crucial factor for its price trajectory. Shibarium is designed to reduce SHIBs circulating supply through a mechanism that burns SHIB tokens from transaction fees. As these tokens are removed from circulation, supply constraints could boost demand, which in turn may positively affect SHIBs price.
Additionally, Humphries argues that Shibariums transaction efficiency and scalability make SHIB more attractive to investors, particularly in a market cycle where deflationary mechanisms are in demand.
Humphries points out Shiba Inus strong correlation with Ethereum (ETH). Data from IntoTheBlock reveals an 81% correlation between SHIB and ETH over the past month. Given SHIBs status as a prominent ERC-20 token, its performance is closely tied to Ethereums price movements. Humphries suggests that if Ethereum enters a rally, Shiba Inu could see significant price gains as well.
Humphries forecast presents an ambitious vision for Shiba Inu. However, he cautions that these insights should not be taken as financial advice, encouraging investors to approach the market with careful consideration.
Read more: https://www.tronweekly.com/shiba-inus-10x-potential-factors-driving-surge/
Text source: TronWeekly
