thecryptobasic.com
Andrew Kang, co-founder of Mechanism Capital, has suggested how meme coins like Shiba Inu may see a 100X expansion in their market cap.
Kang believes the 100X growth would be catalyzed by venture capitalist (VC) firms’ expanding interest in coins like Shiba Inu. The industry pundit expressed this view in a recent post on X following a revelation of the cryptocurrency holdings of some of the largest VC firms.
Specifically, the disclosure came from market intelligence platform Arkham. It presented data on the crypto portfolios of six VC firms, including Paradigm, Andreessen Horowitz (a16z), Symbolic Capital Partners, and Animoca Brands.
VC Firms’ Shiba Inu Holdings
Paradigm, which topped the chart, has a crypto portfolio worth over $425 million, though, per Arkham statistics, it does not hold Shiba Inu. Meanwhile, Shiba Inu makes a notable appearance in Symbolic Capital Partners’ digital asset portfolio. Besides stablecoins, SHIB comes right behind the investment firm’s Wrapped BTC and ETH holdings.
In particular, Symbolic Capital Partners holds 65.97 billion SHIB tokens, valued at $1.64 million at press time. This figure represents less than 1% of its $81.39 million crypto investment portfolio.
Meanwhile, investment firm SCP Ventures holds Shiba Inu tokens worth $1.6 million, accounting for 2% of its crypto asset portfolio.
Shiba Inu Cap Projected to 100X
While reacting to this data, Kang emphasized how institutional investors are finding meme coins like Shiba Inu appealing. He suggested their continued involvement would contribute to the next 10 to 100-fold increase in meme coin market cap increase.
Kang envisioned this remarkable growth occurring incrementally, projecting institutional investors gradually allocating more of their portfolios to SHIB—from below 1% to 1%, 5%, 10%, and potentially even surpassing 15%.
Paradigm owns $2m SHIB
Institutional allocators will slowly move from
<1% to 1% to 5% to 10% to 15%+
This will drive the next 10-100x in memecoin market cap
But Kelly optimizing means max betting before that happens, not after https://t.co/FPlGK1noaC
— Andrew Kang (@Rewkang) April 25, 2024
SHIB Price with 100X Cap Growth
As of the latest update, Shiba Inu commands a market valuation of $14.61 billion, ranking as the 11th most valuable cryptocurrency. If its market capitalization were to increase tenfold, it would surge past $146 billion. Interestingly, crypto investor Jake previously argued Shiba Inu’s likelihood to attain a $100 billion cap this season.
However, envisioning a 100-fold growth would catapult this meme coin to an astonishing market cap of $1.46 trillion. Remarkably, this $1.46 trillion cap currently exceeds the market share of Bitcoin, the foremost cryptocurrency in the market.
Meanwhile, assuming SHIB’s market supply remains the same, a $1.461 trillion cap places Shiba Inu’s price at $0.00247, eliminating two zeros from its current $0.0000247 value.