- Crypto analyst Zach Humphries highlights Shibarium, Shiba Inu’s Layer-2 blockchain, as a key factor, potentially driving the demand for Shiba Inu (SHIB).
- SHIB’s strong correlation with Ethereum (81% over the past month) suggests that any ETH price rally could positively influence SHIB.
Shiba Inu (SHIB), a popular dog-faced meme coin, could reach a staggering $100 billion market cap, according to crypto analyst Zach Humphries. This bold prediction represents a massive leap from its current valuation. If realized, would bring SHIB’s price to approximately $0.000171, marking a remarkable 800% increase from its existing level.
Crypto Analyst Hints At Major Shiba Inu Price Surge
Known for his expertise in analyzing memecoins, Humphries has once again shared his optimistic outlook for Shiba Inu. He identified key drivers behind this potential rally while SHIB price soared nearly 7% in the market trading session today.
For this, he spotlighted the SHIB price’s dramatic rise in 2021, when modest investments ballooned into substantial profits. Moreover, Humphries drew comparisons between that historic period and the present market conditions. In 2021, SHIB witnessed an unprecedented rally, transforming small investments into life-changing gains for early investors.
According to data from CoinGecko, a mere $12 investment in SHIB grew to $1 million in value during that year. This surge showcased an impressive 8,424,203% increase. While Humphries is not predicting another performance of this magnitude, he believes SHIB price could benefit from renewed interest among retail investors.
Humphries highlighted Shiba Inu’s solid brand strength as a key factor that may attract new investors. In the crowded meme coin sector, SHIB has established itself as a familiar name with a dedicated following, enhancing its visibility among retail investors.
The analyst argued that this strong brand presence could play a central role in SHIB price growth as newcomers look for recognizable names within the crypto space. With the return of retail investors, Humphries suggests that Shiba Inu’s reputation as an “OG” meme coin could put it in a favorable position to capture market interest.
Additionally, Shiba Inu’s team lead, Shytoshi Kusama, has ignited excitement in the crypto market with plans to establish an S.H.I.B Silicon Valley for crypto innovation in the U.S., reported CNF.
Shibarium To Play A Vital Role
Another element Humphries points to is Shibarium, Shiba Inu’s Layer-2 blockchain network. This blockchain is designed to burn tokens and enhance transaction efficiency. Thus, by reducing SHIB’s circulating supply, Shibarium introduces a deflationary mechanism that may boost demand, reported CNF.
The project’s burn process, which removes SHIB tokens from the market as part of transaction fees, may create a supply squeeze. Humphries believes this burn mechanism, coupled with Shibarium’s improved scalability and efficiency, could add to SHIB’s attractiveness for investors.
Furthermore, Humphries also emphasized the significant correlation between Shiba Inu and Ethereum (ETH). For this, he highlighted the SHIB price performance link to Ethereum price activity. Recent data from blockchain analytics platform IntoTheBlock reports an 81% correlation between SHIB and ETH over the last month.
As an ERC-20 token, Shiba Inu is deeply connected to Ethereum’s market trajectory. This makes it likely that SHIB could mirror any upward trend in ETH. Humphries suggests that if Ethereum price experiences a rally, Shiba Inu may benefit as well, potentially lifting its price alongside ETH’s gains.
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