Shiba Inu (SHIB) could soar by a comparative margin if the market cap of Dogecoin (DOGE), the original meme coin, doubles.
The meme coin narrative has gained attention following the launch of new entrants such as Ethereum-based Pepe (PEPE) and the Solana-native tokens dogwifhat (WIF) and Bonk (BONK). However, the two leading meme assets DOGE and SHIB have maintained their prominence.
Dogecoin’s Potential
For context, the valuations of Dogecoin and Shiba Inu make up about 62% of the entire meme coin market cap, with DOGE leading the way. Being the original meme coin, Dogecoin currently boasts a market cap of $46.5 billion, representing over 48% of the meme coin market at $95.54 billion.
As the seventh-largest crypto asset, Dogecoin boasts a greater valuation than most leading mainstream tokens such as the stablecoin USDC and risk assets Cardano (ADA) and Tron (TRX). Despite its lofty position, analysts believe Dogecoin has the potential to claim higher grounds.
Amid the price targets, earlier this month, one analyst projected an imminent increase to a price of $0.66, marking a 112% rise from the current price of $0.31. While this target is still below the meme coin’s 2021 all-time high of $0.73, it would essentially double its current market cap to about $93 billion.
Shiba Inu Price if Dogecoin Market Cap Doubles
Interestingly, given Dogecoin’s relationship with Shiba Inu, some expect a rally from DOGE to spill into the Shiba Inu market. This phenomenon occurred during the meme coin craze in March, allowing Shiba Inu to surge by more than 300% to a yearly peak of $0.000045.
Market data also confirms that Dogecoin and Shiba Inu have similar price actions. IntoTheBlock indicates that SHIB has an 89% price correlation with DOGE, with only Bitcoin (BTC) boasting a greater correlation. CoinMarketCap also shows that Dogecoin and Shiba Inu have moved in similar trajectories over the last 30 days.
Shiba Inu and Dogecoin Price Correlation | CMC
With this close price relationship, SHIB is likely to benefit from a spike in Dogecoin’s price, which would lead to a 2x increase in its market cap. If Shiba Inu follows a similar 112% increase, its price could rise from the current value of $0.00002176 to a new yearly peak of $0.00004613.
In October, market analyst AJTrader suggested that Shiba Inu could claim the $0.00004 price territory. For context, a price rally to the $0.000046 level would push Shiba Inu’s market cap to $27.18 billion. The last time XRP saw this valuation was in December 2021.
