Andrew Kang, co-founder of Mechanism Capital, has put forward an interesting idea regarding the potential growth of meme coins like Shiba Inu. Kang believes that the market cap of these coins could experience a significant expansion of 100 times its current value. He attributes this growth to the increasing interest of venture capitalist (VC) firms in coins like Shiba Inu. Kang shared his thoughts on this matter in a recent post on X, following the revelation of the cryptocurrency holdings of several major VC firms.
Market intelligence platform Arkham provided data on the crypto portfolios of six VC firms, including Paradigm, Andreessen Horowitz (a16z), Symbolic Capital Partners, and Animoca Brands. According to the statistics presented by Arkham, Paradigm has a crypto portfolio worth over $425 million, but does not hold any Shiba Inu. On the other hand, Symbolic Capital Partners has included Shiba Inu in its digital asset portfolio, alongside stablecoins. The firm currently holds 65.97 billion SHIB tokens, valued at $1.64 million. This represents less than 1% of its $81.39 million crypto investment portfolio. Another investment firm, SCP Ventures, holds Shiba Inu tokens worth $1.6 million, accounting for 2% of its crypto asset portfolio.
In response to this data, Kang highlighted the growing appeal of meme coins like Shiba Inu among institutional investors. He believes that their continued involvement will contribute to a significant increase in the market cap of meme coins, potentially reaching 10 to 100 times its current value. Kang envisions this growth happening gradually, with institutional investors gradually allocating more of their portfolios to SHIB, potentially surpassing 15%.
Currently, Shiba Inu has a market valuation of $14.61 billion, making it the 11th most valuable cryptocurrency. If its market capitalization were to increase tenfold, it would surpass $146 billion. However, Kang’s projection of a 100-fold growth would result in an astonishing market cap of $1.46 trillion, which is higher than the current market share of Bitcoin, the leading cryptocurrency.
Assuming that SHIB’s market supply remains the same, a $1.461 trillion market cap would translate to a price of $0.00247 per token, eliminating two zeros from its current value of $0.0000247.
It is important to note that this article is for informational purposes only and should not be considered financial advice. The views expressed in this article are the author’s personal opinions and do not reflect the opinion of The Crypto Basic. Readers are advised to conduct thorough research before making any investment decisions, and The Crypto Basic is not responsible for any financial losses incurred.
