Should Ethereum’s market cap reach $5 trillion following the ETF approval, the Shiba Inu price could reach unprecedented levels if it follows ETH’s trajectory.
The Ethereum ETF products began trading on July 23, having secured the final approval from the U.S. SEC. On their first day of trading, the nine ETFs witnessed $106.8 million in net inflows. In addition, trade volume hit an impressive $1.112 billion. Following the netflows, the products now boast $10.2 billion in assets.
These debut figures exceeded expectations, bolstering confidence in the future performance of the products. Amid the optimism, bullish sentiments around Ethereum have picked up. Notably, Citi expects the Ethereum ETFs to see $5.4 billion in net inflows for the first six months. In addition, analysts project a $5,000 target for ETH.
Shiba Inu and Ethereum Price Correlation
This is one of multiple projections around Ethereum. Interestingly, should the crypto token record any of these rallies, the phenomenon could positively impact other assets like Shiba Inu. This is due to Shiba Inu’s correlation matrix with Ethereum, which IntoTheBlock puts at 88% over a 60-day period.
This entails that Shiba Inu witnesses a price spike whenever Ethereum increases in value. This pattern is illustrated in a CoinMarketCap chart featuring both assets. Notably, over the past week, SHIB and ETH have moved side-by-side. However, Shiba Inu typically sees higher price swings due to its greater volatility.
Shiba Inu’s price could reach unprecedented levels if it follows ETH’s trajectory, should Ethereum hit a $5 trillion market cap following the ETF approval.
Shiba Inu Price if ETH Hits $5T Market Cap
Citing this correlation, The Crypto Basic assessed how much Shiba Inu could rise if it trails Ethereum’s trajectory in the event that ETH’s market cap reaches $5 trillion. Ethereum’s market cap, currently at $405.7 billion, would reach $5 trillion if the ETH price spiked to $41,587. This evaluation assumes that the 120 million ETH supply remains stable.
Meanwhile, Ethereum currently changes hands at $3,375. For the price to reach the $41,587 target from this level, it must rally by as much as 1,132%. Interestingly, if Shiba Inu follows a similar path, its price would jump from the current $0.00001711 to a new all-time high of $0.0002108. SHIB’s market cap would amount to $124 billion at this price, exceeding BNB’s current market cap. SHIB will lose one zero in such a case if it rises by 1,132%.
However, should Ethereum reach this target price, could Shiba Inu’s rally exceed 1,132% due to greater volatility? Nonetheless, despite how enticing this evaluation is, it is important to note that Ethereum might not hit the $5 trillion market cap. Even if it does, SHIB’s price might not follow Ethereum’s path due to its unique sentiments.
Disclaimer: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic’s opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
