Shiba Inu (SHIB/USD) surged last week, currently ranking 17th by market cap. Tesla CEO Elon Musk spurred the altcoin with an unrelated tweet. SHIB may have seen unprecedented gains, but at least one analyst has warned against overly high hopes.
Yesterday, there was a dramatic slump in SHIB’s value. According to CoinMarketCap, it was changing hands for $0.00002818, marking a drop of 3.84 percent.
Don Guo, CEO of Broctagon, said in an interview with Express.co.uk:
While it is an interesting sentiment, it is impossible for Shiba Inu Coin to reach $1. The reason behind this is that there simply isn’t enough money in the world to do so – in order for SHIB to reach a dollar, it requires a market capitalisation of one quadrillion US dollars. In comparison, the entirety of the US National Debt is $23.3 trillion – and even that staggering sum constitutes less than three percent of the amount required for SHIB to reach that price point.
The expert added that in light of current trends, Shiba was more likely to hold its value of less than a fraction of a cent. He suggests using Dogecoin (DOGE/USD) to estimate SHIB’s potential growth because both coins are coming from the same place: the 2014 Doge meme. Don Guo explained:
With DOGE’s market capitalisation reaching $32.3 billion, it is far more likely for SHIB to reach this price, which translates to around $0.000065 per SHIB. If we were to compare to DOGE’s peak price, we can even expect to see an upside of close to 600 percent – this will bring SHIB’s market capitalisation to more than $69 billion, making it rank higher than the USDT.
Meme coins extremely vulnerable to influencer position
Shiba Inu’s status of a meme coin makes it highly vulnerable to influencer opinion. A single Musk tweet can change markets within very short times frames. One notable surge in its price came after Musk tweeted pictures of his Shiba Inu puppy Floki, which led to the creation of another meme coin, Flokitoken.
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from Dogecoin – Invezz
