Shiba Inu (SHIB), the meme coin that took the crypto world by storm, continues to be a focal point for investors and enthusiasts alike. Known for its rapid price movements, Shiba Inu has the potential to reach new heights if it achieves a daily trading volume of $50 billion, especially if most of this volume leans toward the buy side.
Shiba Inu’s Meteoric Rise
Shiba Inu’s most historic run came during the 2020/2021 bull market, where it famously turned a modest $12 investment into a staggering $1 million. Although SHIB has since dropped from its all-time high of $0.00008845, there is optimism among experts that it could reclaim this price level. For such a resurgence to occur, Shiba Inu would need to attract immense demand, leading to a significant surge in trading volume.
The Role of Trading Volume
Trading volume alone doesn’t guarantee price growth. The impact of high volume on SHIB’s price would largely depend on the market sentiment. A $50 billion trading volume characterized by bullish activity could indeed translate into substantial price gains. For instance, during the period from November 5 to 16, 2024, most SHIB trading volume represented buy activity, which led to a noticeable price increase. Data from IntoTheBlock showed that on November 16, large players purchased 4.72 trillion SHIB, while bears sold 4.52 trillion tokens, resulting in an excess demand of 201 billion SHIB.
Historically, Shiba Inu has shown a strong correlation between trading volume and price surges. During its October 2021 rally, trading volume exceeded $30 billion, driving SHIB’s price to its all-time high of $0.000088. CoinMarketCap data confirms that SHIB had a volume of $39 billion on October 27 and $32.8 billion on October 28, 2021. Following this period, Shiba Inu experienced declining trading volumes and a subsequent drop in price. Since then, SHIB’s 24-hour volume has ranged from $200 million to $500 million.
Potential Price Targets
If trading activity reaches the $50 billion mark, Shiba Inu could revisit or even exceed its previous price levels. Analysts believe that such a volume spike could push SHIB to resistance levels around $0.00005 or higher, with optimistic projections targeting $0.00015 under favorable market conditions.
Achieving the $50 Billion Milestone
Achieving a $50 billion daily trading volume is no small feat. While Shiba Inu’s trading volume rose to a high of $8.96 billion in early March 2024, peaking at $16 billion as the meme coin surpassed the $0.00003 level, reaching $50 billion would require a significant increase in market interest. Currently, SHIB’s volume sits at $1.18 billion, meaning it would need to spike by 4,137% to reach the $50 billion mark.
Should Shiba Inu achieve this, market dynamics would play a crucial role in determining the impact of such high trading volume. Rising liquidity would likely attract both institutional and retail investors, creating more buying pressure. Additionally, Shiba Inu’s ongoing token burn initiatives could amplify this effect, reducing supply and potentially driving up the price.
Conclusion
While reaching a $50 billion daily trading volume presents a formidable challenge, the potential rewards for Shiba Inu could be substantial. With the right market conditions and sustained investor interest, SHIB could once again capture the spotlight, offering significant returns to its holders. As always in the volatile world of cryptocurrencies, investors should remain cautious and stay informed.
4o
