What’s subsequent for Shiba Inu (CRYPTO:SHIB)? That is a pure query to ask after the digital token skyrocketed within the ballpark of 52,000,000% this 12 months.
Some predict an enormous downturn for the cryptocurrency. Others assume that there are still several catalysts that might drive Shiba Inu even larger. Some of the vital of these catalysts is the likelihood that Robinhood (NASDAQ:HOOD) might announce help for the coin.
Up to now, Robinhood executives have dragged their heels relating to together with further digital tokens on its buying and selling platform. Nevertheless, this sluggishness hasn’t dampened hopes {that a} constructive choice might be on the best way. However simply how a lot would Shiba Inu soar if Robinhood provides the altcoin?
Picture supply: Getty Pictures.
Wanting again
Arguably, one of the best ways to find out how a lot Shiba Inu’s worth might soar if it is added to Robinhood is to take a look at the experiences of different digital cash. Robinhood first launched help for cryptocurrency buying and selling on Jan. 25, 2018 (in choose markets) with help for Bitcoin (CRYPTO:BTC) and Ethereum (CRYPTO:ETH).
How a lot of an impression did this announcement make? Not a lot. The chart beneath reveals how the 2 cryptocurrency costs modified then.
Bitcoin Price information by YCharts.
Inside a matter of days, the good points for Bitcoin and Ethereum evaporated. However these had been and nonetheless are the 2 greatest cryptocurrencies available on the market.
Robinhood introduced the addition of Litecoin (CRYPTO:LTC) and Bitcoin Money (CRYPTO:BCH) on July 12, 2018. Their strikes had been extra dramatic on the information, proper? Really, no.
Litecoin Price information by YCharts.
Let’s strive once more. Robinhood rolled out help for Dogecoin (CRYPTO:DOGE) solely 4 days after enabling the buying and selling of Litecoin and Bitcoin Money. How did Dogecoin fare?
Dogecoin Price information by YCharts.
Not like its predecessor cryptocurrencies on Robinhood, Dogecoin delivered a formidable achieve after being added to the platform. There is a good case to be made that Dogecoin is a greater comparability for Shiba Inu than Bitcoin, Ethereum, Litecoin, or Bitcoin Money.
Each Shiba Inu and Dogecoin are meme cash. Each use the Shiba Inu canine as their mascots. Shiba Inu supporters even invited the comparisons by referring to the token because the “Dogecoin killer.”
Completely different dynamics
Ought to we assume that Shiba Inu’s transfer can be in the identical ballpark as Dogecoin’s good soar if Robinhood provides the altcoin? Not essentially. There are totally different dynamics at play for Shiba Inu proper now than there have been for Dogecoin again in 2018.
On the time that it was added to Robinhood, Dogecoin was up lower than 750% since its launch. The digital token had plunged greater than 80% from its excessive set earlier within the 12 months. However the actually massive run-up for Dogecoin was but to return.
It is at the moment a really totally different story for Shiba Inu. As talked about earlier, the coin has skyrocketed roughly 52,000,000% this 12 months. Certain, Shiba Inu is down 56% beneath its excessive mark on Oct. 28, 2021. Nevertheless, it is a great distance from dropping as a lot as Dogecoin did when it was included on the Robinhood buying and selling platform.
There’s additionally a case to be made that expectations that Robinhood will add help for Shiba Inu are a minimum of partially baked into its worth. Traders have been speculating for some time now that Robinhood might quickly embody the altcoin.
A greatest guess
We will not know for certain how a lot Shiba Inu would possibly soar if and when Robinhood pronounces help for the cryptocurrency. Nevertheless, I am going to put ahead my greatest guess.
I do not assume that buyers will basically yawn as they did when Robinhood added Bitcoin, Ethereum, Litecoin, and Bitcoin Money. However, I additionally do not anticipate as massive of a transfer as Dogecoin loved.
My hunch is that Shiba Inu might vault 20% to 30% larger if Robinhood decides to incorporate it. We might even see Shiba Inu inch previous Dogecoin within the rankings based mostly on market cap.
This assumes, although, that the general atmosphere for cryptocurrencies remains to be constructive. If that is not the case, all bets are off.
This text represents the opinion of the author, who might disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis — even certainly one of our personal — helps us all assume critically about investing and make selections that assist us turn out to be smarter, happier, and richer.
