Analyst says Shiba Inu won’t reach $1 due to current market trends
Shiba Inu would require a market cap of 1 Quadrillion USD if it were to reach $1, the analyst says
He says even reaching the equivalent of the US National Debt at $23 trillion would only be 3% of what SHIB needs to hit the psychological level
Shiba Inu is currently the 12th largest cryptocurrency with a market cap of about $23 billion
Shiba Inu has declined around 6% in the past 24 hours and is down nearly 23% over the past week.
Despite this bearish outlook, the SHIB token remains well in the green year-to-date and it is one of crypto’s breakout cryptocurrencies this past year. According to data from CoinGecko, SHIB price has increased by a staggering 61727645% since November 2020.
And with more value locked in the DeFi sector, investor perspective for the coin is that it can mirror and even outrun its meme counterpart DogeCoin (DOGE) towards a new record.
Can SHIB eventually hit $1?
According to Broctagon CEO Don Guo, this is very unlikely and virtually impossible.
Guo says Shiba Inu price reaching the dollar mark, a psychological target many investors see as the milestone that would set the crypto to the next level in terms of market performance, requires an astronomical capital inflow.
The Broctagon chief notes that the amounts of money required to make it possible for SHIB to rally to one dollar by market value are not available.
“In order for SHIB to reach a dollar, it requires a market capitalisation of one quadrillion US dollars,” he said on Tuesday in comments published by Express.co.uk.
Guo compared the above amounts to the current US National Debt, which he put at around $23.3 trillion. According to him, these are astronomical sums. However, the total pales compared to what SHIB needs to rise to the abovementioned price.
So how does Guo predict Shiba Inu to perform?
The expert points to Dogecoin’s performance as a potential mirror for how high SHIB price can go. With the original meme coin’s market cap around $33 billion, Guo estimates reaching a similar level would put SHIB around $0.000065.
The fintech expert says such a move would see Shiba Inu’s price grow by about 200% from current levels. But DOGE hit peaks above $0.73 in May and a rally shadowing the upside could take SHIB up by 600% and see its market cap more than triple.
That could push Shiba Inu price beyond the $0.000086 peak reached in October. Yet, according to Guo, market trends suggest the crypto will continue to fluctuate “within its ballpark of less than a fraction of a cent.”