Shiba Inu is a dogecoin spin-off and its value has surged by around 197.81 percent in a week. The price jump has been attributed to the Tesla and SpaceX founder Elon Musk. The token claims 50 percent of the total supply has been locked to Uniswap with the remaining 50 percent burned to Ethereum co-founder Vitalik Buterin. Express.co.uk speaks to crypto market experts about the price of Shiba Inu coin and its projections for valuation changes in the future.
The price of Shiba Inu coin has climbed in the past 24 hours – rising 14.48 percent.
However, SHIB is up overall, having surged in the past seven days, growing 197.81 percent.
Shiba Inu has grown by the largest percentage of any currencies on CoinMarketCap, ahead of Fantom which is in second place at 55.96 percent.
The market cap for the digital coin is currently at $11,566,457,281 and it is the 18th largest coin on CoinMarketCap.
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Don Guo, CEO of fintech firm Broctagon, said it is impossible for the digital coin to reach $1 because there is simply not enough money in the world for this to happen.
Mr Guo told Express.co.uk: “In order for SHIB to reach a dollar, it requires a market capitalisation of one quadrillion US dollars.
“In comparison, the entirety of the U.S. National Debt is $23.3 trillion – and even that staggering sum constitutes less than 3 percent of the amount required for SHIB to reach that price point.
“Given current trends, it is more likely that Shiba will remain within its ballpark of less than a fraction of a cent.”
The Broctagon CEO said Dogecoin can be used to estimate the potential growth for SHIB.
Dogecoin’s market capitalisation has reached $32.3bn and it is far more likely for Shiba Inu to reach this price, which translates to around $0.000065 per SHIB.
At current prices, Mr Guo said it is likely there will be an upside of close to 200 percent.
However, if compared to dogecoin’s peak price, there could be an upswing of close to 600 percent, which would see market capitalisation for SHIB at more than $69bn.
This would mean it ranks as higher than the fifth-highest digital currency on CoinMarketCap – higher than Tether USDT and making it the third-ranking crypto behind Bitcoin and Ethereum.
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The academic dean and managing director of the London Academy of Trading (LAT) Paddy Osborn said the digital currency has grown 8,000 percent in the last 12 months.
However, the cryptocurrency is still only trading at $0.00002 which means it would need further growth of 5,000,000 percent to reach $1.
Mr Osborn told Express.co.uk: “Shiba Inu coin is clearly in vogue right now, but whether this will continue in the long term is impossible to say.
“However, I believe it is unlikely to continue as it has done in recent days and weeks.”
Other experts have made estimates as to how they think the value of the digital currency will change in the future.
Wallet Investor estimates with a five-year investment, revenue will be a rise of 737.5 percent with a price prognosis for 2026 estimated to hit $0.0000670.
Analysts at Changelly believe the price will rise and reach twice its current rate hitting $0.0000202 by the end of the year.
However, GOV Capital has a more conservative estimate for the end of 2021 predicting the digital currency to hit $0.000018.
Mr Osborn said the reason for this is because the crypto market is “very young and fast-moving”.
It is out of favour all the time because the crypto investor base is relatively inexperienced and naive according to the dean.
Part of the reason for the surge this week was Mr Musk sharing an image of his own Shiba Inu breed dog named Floki.
Soon after he tweeted the image, the hashtag #SHIB began trending spiking interest in the cryptocurrency.