According to a report by Sentora (formerly IntoTheBlock), Shiba Inu’s (SHIB) price gained 60% in July and14% in early August of this year. The price surge came in tandem with increased institutional inflows into Ethereum (ETH). Reports highlight that corporate treasuries hold 3,040,000 ETH, valued at $11.32 billion. According to the report, “SHIB’s resurgence appears linked to inflows from US-based corporates acquiring ETH.“
Will Ethereum Inflows Further Push Shiba Inu’s Price?
According to Sentora, “Corporate investors’ demand for crypto treasuries has largely centered on Ethereum, Solana, and Bitcoin.” However, the report notes that on-chain metrics show a surge in Shiba Inu acquisition.
Shiba Inu (SHIB) launched its layer-2 network, Shibarium, in 2023. However, at its core, SHIB is still an ERC-20 token based on the Ethereum blockchain. The Shibarium network is built on Ethereum. This core connection between Shiba Inu and Ethereum may have boosted SHIB investors’ sentiment.
Ethereum (ETH) has seen consistent institutional inflows over the last few months. The asset hit an all-time high of $4,946.05 on Aug. 24. ETH hit a new peak after nearly four years. Institutional inflows into ETH are expected to continue growing over the coming months. Shiba Inu’s (SHIB) price may benefit from such a scenario.
According to CoinCodex analysts, Shiba Inu (SHIB) could surge to $0.00003206 on Oct. 8. Hitting $0.00003206 from current price levels will entail a rally of about 154%. CoinCodex does not expect SHIB’s price to hold at $0.00003. The platform anticipates a correction to around $0.000016 by late November.
Also Read: Shiba Inu ATH Nears As Analyst Spots End of Consolidation Phase
There is a high chance of an interest rate cut in September. Rate cuts often lead to investors taking on more risks. Shiba Inu (SHIB), being a memecoin, is among the riskiest of assets. A rate cut could lead to investors pouring more money into SHIB. Such a development could further help SHIB’s price.
