Shiba Inu (SHIB) has made significant strides in the digital asset market, currently holding a market capitalization of over $4.4 billion. This remarkable achievement has propelled SHIB to claim the 18th position among the largest cryptocurrencies.
Over the course of the past month, SHIB has witnessed a substantial increase in market capitalization. From June 13 up until today, there has been a surge of approximately half a billion dollars, elevating the market cap from a modest $3.9 billion to its current impressive level.
Such a substantial rise in market capitalization prompts speculation regarding the potential impact on the price of SHIB. As the SHIB market cap continues to grow, it can create a sense of optimism among investors, potentially leading to increased demand and upward price pressure for the token.
Shiba Inu market cap movement. Source: CoinMarketCap
Potential Impact On Shiba Inu Price
Market capitalization plays a significant role in determining the value and potential growth of a cryptocurrency like Shiba Inu. When a crypto coin’s market capitalization improves, it can have several implications for its price. Let’s explore the potential impact of an improved market capitalization on the price of SHIB.
As the market capitalization of SHIB grows, it indicates a rising level of investor confidence in the cryptocurrency. A higher market capitalization often attracts more investors who believe in the project’s potential. This increased demand can exert upward pressure on the price of SHIB, driving it higher.
SHIB market cap currently at $4.47 billion. Chart: TradingView.com
An improved market capitalization generally leads to increased liquidity for a cryptocurrency. Liquidity refers to the ease of buying and selling a particular asset. When there is higher liquidity, it becomes easier for investors to trade SHIB without significantly impacting its price. This increased liquidity can create a more stable trading environment and potentially contribute to a more sustainable price trend for SHIB.
Potential For Price Volatility
When a cryptocurrency like SHIB experiences a notable increase in market capitalization, it tends to attract attention from the media, traders, and the crypto community. The positive sentiment surrounding the coin can further boost its price. Increased media coverage and discussions within the community can generate hype and attract more investors, potentially driving the price of SHIB even higher.
Despite an increased market capitalization, SHIB’s price may still experience fluctuations due to market dynamics, news events, regulatory developments, or changes in investor sentiment.
At the time of writing, SHIB is currently priced at $0.00000746 according to CoinMarketCap, experiencing a 24-hour decline of 1.1%. Over the course of the past seven days, SHIB has witnessed a slight decrease of 0.1%.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk).
Featured image from Fortune