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Famous crypto analyst Zach Humphries highlights factors that could propel Shiba Inu’s market cap by a massive 10-fold.
In an X post today, Humphries claimed that if Shiba Inu witnesses a 10x surge from its level at the time of the tweet, its market cap would hit an outstanding $100.7 billion. This would bring the price of SHIB to $0.000171.
According to Humphries, Shiba Inu’s potential surge to the $0.000171 mark represents an increase of 899% from the present value. This suggests that SHIB was trading at $0.00001711 at the time of the tweet.
It is worth mentioning that Humphries has been expressing confidence in Shiba Inu’s potential rally to the $100 billion target. In June, Humphries hinted that SHIB was on its way to a $100 billion market cap. At the time, the expert did not highlight any factor that could elevate the asset to this jaw-dropping valuation.
Factors That Could Propel SHIB for a 10x Surge
Meanwhile, in his latest projection, he provided insight into how Shiba Inu could surge by 10x to a valuation of $100 billion.
Historical Performance
First, Humphries referenced Shiba Inu’s historical performance, specifically in 2021. Recall that SHIB witnessed a remarkable surge in 2021, turning several low-income earners into overnight millionaires.
Last year, CoinGecko recounted how a $12 investment in SHIB surged to $1 million following a remarkable increase of 8,424,203% in 2021.
While Humphries believes that Shiba Inu might not repeat this incredible performance, he projected that ‘OG’ memecoins, especially SHIB, will embark on another jaw-dropping increase when retail investors re-enter the market.
Shiba Inu Brand Recognition
The analyst suggested that Shiba Inu has good brand recognition in the memecoin space, potentially making it the go-to asset for new investors seeking to invest in recognized meme-based tokens.
Shiba Inu’s popularity in the crypto space has continued to surge thanks to its vibrant community. These users have created awareness around SHIB, projecting it as a viable investment vehicle for new investors.
Consequently, Humphries indicated that many first-time memecoin investors will likely adopt tokens like SHIB that have good brand awareness. Amid growing demand from these new investors, Humphries expects SHIB to potentially hit a market cap of $100 billion.
Shibarium Potential on SHIB
According to Humphries, Shiba Inu’s Layer-2 blockchain Shibarium might impact SHIB’s price action. He indicated that Shibarium could drastically reduce SHIB’s circulating supply through burns. The L2 blockchain is designed to burn SHIB using a portion of its overall transaction fees.
As more SHIB tokens are burned through Shibarium gas fees, Humphries suggested that the move would attract more investors to the asset this cycle, potentially driving its price upward.
Ethereum Influence
Lastly, the expert asserted that Shiba Inu is correlated with Ethereum (ETH) due to its ranking as a top ERC-20 token. Based on this correlation, Humphries expects the price of Shiba Inu to surge tremendously when Ethereum experiences a remarkable surge.
For context, data from IntoTheBlock shows that Shiba Inu has an 81% correlation with Ethereum over the past 30 days. This indicates that ETH price action is highly likely to influence Shiba Inu’s performance. To put it into perspective, an upward price surge for Ethereum could also position SHIB for a rally and vice versa.
Overall, Humphries believes that the aforementioned factors could set Shiba Inu up for a jaw-dropping rally to a $100 billion market cap, potentially pushing SHIB’s price to $0.000171. While the forecast looks enticing, Humphries warned that the analysis should not be considered financial advice.