Shiba Inu (SHIB) Lags Behind Dogecoin (DOGE) Rally, But Correlation Hints at Potential Upside

The cryptocurrency market is buzzing, but Shiba Inu (SHIB) seems to be lagging behind. Despite the overall market uptick, Shiba Inu's performance remains subdued

The cryptocurrency market is showing signs of recovery, but Shiba Inu (SHIB) seems to be lagging behind. Despite the overall market uptick, SHIB’s performance is remaining subdued, especially compared to Dogecoin (DOGE), which is seeing notable gains.

The dynamic between the two meme coins has sparked discussions about their correlation and whether a DOGE rally could eventually pull SHIB upward.

Meme coins owe much of their cultural and financial roots to Dogecoin, the pioneer in this niche. SHIB, like many others, was inspired by DOGE. Over the past 60 days, the correlation coefficient between Shiba Inu and DOGE stood at 0.88—a significant indicator of their price movement similarity. This high correlation suggests that SHIB’s trajectory could be influenced by DOGE’s bullish rallies.

Interestingly, SHIB displays a weaker association with mainstream cryptocurrencies like Bitcoin and Ethereum, making it more likely to follow DOGE’s footsteps than broader market trends.

At press time, SHIB was priced at $0.00002142, reflecting a modest 0.64% increase over the last 24 hours. Its market capitalization sat at $12.63 billion. In contrast, DOGE was trading at $0.3602, marking a robust 4% daily rise and a significantly higher market valuation of $53.21 billion.

This performance disparity highlights DOGE’s stronger momentum, leaving SHIB in its shadow for now. However, the meme coin market is notoriously volatile, and SHIB could quickly shift gears.

$1 Trillion Question: Can DOGE and Shiba Inu Reach New Heights?

Dogecoin’s potential to become the first meme coin with a $1 trillion market capitalization is being hotly debated. Achieving this milestone would require an 1,865% price increase, pushing DOGE to $6.77, assuming its supply remains constant.

If DOGE manages this feat, SHIB could see a proportional spike. An equivalent 1,865% rise would catapult SHIB’s price to $0.0004193, a staggering leap from its current value. This possibility hinges on DOGE’s ability to sustain and amplify its market dominance, which would likely ripple through the meme coin ecosystem.

Despite its current sluggish pace, SHIB’s high correlation with DOGE suggests it could ride on DOGE’s coattails if the latter experiences a significant rally. Meme coin enthusiasts and investors are closely monitoring DOGE’s trajectory, knowing that its success could create a domino effect.

For now, SHIB remains a step behind, but its potential for exponential growth cannot be dismissed. As DOGE continues its climb, SHIB investors may find hope in the tight bond between the two assets.