Should Ethereum’s market cap reach $5 trillion following 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 final approval from the U.S. SEC. On their first day of trading, the nine ETFs witnessed $106.8 million in net inflows, with a trade volume hitting an impressive $1.112 billion. These debut figures exceeded expectations, bolstering confidence in the future performance of the products.
Ethereum ETF Trading and Market Impact
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, with analysts projecting a $5,000 target for ETH. This positive outlook on Ethereum could have significant implications for other correlated assets like Shiba Inu.
Shiba Inu and Ethereum Price Correlation
The correlation between Shiba Inu and Ethereum is substantial, with an 88% correlation matrix over a 60-day period according to IntoTheBlock. This means that Shiba Inu typically experiences price spikes whenever Ethereum increases in value. Over the past week, SHIB and ETH have moved side-by-side, illustrating this pattern. However, Shiba Inu often sees higher price swings due to its greater volatility.
Shiba Inu Price Projection if ETH Hits $5 Trillion Market Cap
If Ethereum’s market cap reaches $5 trillion, Shiba Inu’s price could rise significantly. Currently, Ethereum’s market cap stands at $405.7 billion. To reach $5 trillion, ETH’s price would need to spike to $41,587, assuming the 120 million ETH supply remains stable. With Ethereum currently trading at $3,375, this would require a rally of 1,132%. If Shiba Inu follows a similar path, its price could jump from the current $0.00001711 to a new all-time high of $0.0002108, losing one zero and reaching a market cap of $124 billion.
Potential for Greater Volatility in Shiba Inu’s Price
Due to Shiba Inu’s greater volatility, its rally could potentially exceed 1,132% if Ethereum achieves this target. However, despite this enticing evaluation, 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 market 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 conduct thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
Stay updated with the latest cryptocurrency market predictions and trends as Ethereum ETFs begin trading and the potential impacts on Shiba Inu’s price unfold.