3 Reasons Why Some Ethereum Whales Constantly Buy Shiba Inu Tokens

Another 50 billion SHIB purchase has been made. Here’s why Ethereum whales are constantly buying Shiba Inu tokens
3 Reasons Why Some Ethereum Whales Constantly Buy Shiba Inu Tokens
3 Reasons Why Some Ethereum Whales Constantly Buy Shiba Inu Tokens

Another 50.9 Billion SHIB Bought By ”Bombur” Whale

— WhaleStats – BabyWhale ($BBW) (@WhaleStats) April 21, 2022

The Shiba Inu drew a lot of attention following its long-awaited listing on the Robinhood trading platform. Along with the increase in social volume, whales have purchased a significant amount of SHIB, making SHIB the most used smart contract among the top 100 ETH whales in the last 24 hours.

According to WhaleStats, the 19th largest ETH whale, “Bombur,” recently purchased 50,992,035,458 SHIB, or $1,269,191. Shiba Inu is currently trading at $0.0000249 at the time of publication.

Following the large purchase of 50 billion Shiba Inu tokens, it is important to understand why Ethereum whales, or large cryptocurrency market participants, are constantly purchasing trillions of SHIB tokens worth millions of dollars.

Whales Are Trying To Take Control Over Shiba Inu

Shiba Inu has the highest USD-valued position among Ethereum whales, according to WhaleStats, with large wallets holding approximately $1.3 billion in SHIB. The desire of whales to control the asset’s market circulation explains their strong dominance.

Shiba Inu Data
Whales Are Trying To Take Control Over Shiba Inu. Source: WhaleStats

A high concentration of supply in the hands of whales is typically regarded as “bullish” by crypto enthusiasts, who prefer accumulating assets over redistributing them.

When retail traders and investors own a large portion of the supply, the market usually experiences more selling pressure than in the opposite case.

A Massive Discount

Whales would not have actively purchased an asset at such a large discount as we see on Shiba Inu while gaining control of the circulating supply.

According to TradingView data, SHIB has lost more than 70% of its value since the ATH, making the Risk/Reward ratio appealing to investors in the event of another rally.

Shiba Has The “Meme Potential”

After Dogecoin’s massive run in 2021, the meme’s potential term was brought up on the market, which usually means that the asset has the potential for a strong rally with no fundamental reasons behind it.

“Meme rallies” are typically fuelled by retail traders and last only a few weeks at most. While these types of rallies can bring hundreds of percent returns to investors and traders, they usually fade quickly and lose up to 90 percent of their value.