The crypto market seems to have woken up with a smile this morning: will the price of THETA and Shiba Inu follow the bullish trend of Bitcoin and Ethereum?
Overall, the rest of the altcoin landscape seems to be traveling in a positive direction.
Summary
Update on the price of the crypto assets THETA and Shiba Inu
THETA, the coin of the blockchain network of the same name that specializes in streaming video, is seeing its price increase on the crypto market by 5.13% in the past 24 hours.
The current price is $1.11 per coin, the market capitalization is $1.1 billion while the trading volume is around $20 million, about half more than yesterday.
Over the past 7 days there has been an ascent for the price of this crypto, which seems to be trying to recover all the value it has lost since mid-2021.
SHIB, on the other hand, a token of the Shiba inu project whose name is based on a particular Japanese dog breed, is rising 2.02% in the last 24 hours while its best friend DOGE rises 6.64% showing more market appeal.
SHIB is priced at $0.0000112 per token with a market capitalization of $6.6 billion and an average volume of $260 million, up 58% from yesterday.
SHIB’s performance over the past 7 days is quite similar to that of THETA, indeed, both crypto assets have been driven by the growth of Bitcoin and Ethereum.
Ethereum in particular is up 6% in the last 24 hours, going against all expectations of the community, which was expecting a dump after the unlocking of staked ETH scheduled by the Shapella update.
A common factor for Theta Network (THETA) and Shiba Inu (SHIB) crypto assets
Both cryptocurrencies appear to have released all the maximum supply set by their respective token economies to the market.
The figure seems interesting when we consider that altcoin inflation is one of the data points that most affects the price of these crypto assets, both as a purely mathematical matter and because of the bad impression it gives investors.
In this case, however, the fully diluted capitalization coincides with the current market capitalization.
Although the price of THETA and SHIB is a long way from the all-time highs touched in April 2021 and October 2021, respectively, at least they can boast the fact that no more tokens will be generated and sold in the market,with related increased selling pressure and negative price effects.
However, this must be put in relation to how many tokens are held by the team and top holders of Theta and Shiba inu.
Indeed, if the mint of all tokens provided by the projects’ whitepapers has been performed, it is not necessarily the case that these are distributed equally to all addresses in the relevant networks.
It is critical to do this kind of analysis so as not to be fooled by the simple “raw” data that CoinMarketCap provides us with.
For example, regarding SHIB, according to Dune‘s data, the top 9 token holders account for about 30% of the entire capitalization.
Previously, Vitalik Buterin, founder of Ethereum, owned about 410 trillion SHIB, but decided to perform a burn equal to 90% of this amount and donate the remaining 10% to the “Covid Crypto Relief Fund.”
Vitalik’s burn was one of the triggers that allowed SHIB to realize monstrous price multipliers during the 2021 bull run.
Will SHIB be able to reach the price of $1 per token?
Many Shiba Inu Project Fans expect that one day their favorite memecoin will reach the price of one dollar sooner or later.
Nothing detracts from the fact that SHIB may one day establish itself as a major asset in the crypto market due to the power of its community and the skill of the project team that has managed to greatly value the token in recent years.
However, when people say that Shiba Inu will reach a price of $1, they are making a big miscalculation.
Although the price has a lot of zeros after the decimal point, this does not mean that reaching the $1 price is feasible. Indeed, it is always necessary to check the proportion between market capitalization and price.
Capitalization is simply the multiplication between circulating supply and price per token.
To give an example, if SHIB were to one day reach the same capitalization as Bitcoin, which seems unreasonable anyway, it would “only” reach a price of $0.001013.
It would take another 1000x increase in that value to reach the phantom $1 per SHIB.
We can understand very well that this is not feasible in this world.
