ETH Whales Amass Shiba Inu Token Before the Launch of Shabarium

[TL; DR]

Most top 100 ETH whales also hold large amounts of SHIBA Inu tokens.

An ETH whale “BlueWhale0159 purchased 150 billion SHIB worth $1,750,500 in July.

These investors anticipate an excremental rise in the value of SHIB.

Several whales, including Trinity, have been buying SHIB over a long period.

Introduction

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SHIBA Inu token, the 15th ranked cryptocurrency by market cap, has been trending since 2021 prompting several ETH whales to purchase and hold it in large amounts. In fact, SHIB is among the top four cryptocurrencies which whales hold. The reason is that Shiba Inu token, the popular meme coin, dubbed the Dogecoin killer, shows great potential for growth in the mid to long term periods. According to analysts its growth potential is clearly noticeable based on its roadmap and partnerships.

SHIBA holding increases by over 500%

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SHIB is the best non-ethereum crypto holding of the top 100 whales. WhaleStats, the transaction tracker, reported that the holding of SHIB increased by over 580% within the last week of July 2022. The dollar value of SHIB the ETH whales hold increased from $736,000 to over $5 million within 24 hours, showing its rising demand. With these recent purchases, Dogecoin became the second largest holding, a sudden jump from the seventh position it held by mid July.

An reports304 whale, “BlueWhale0159 bought 150 billion SHIB at a total cost of $1,750,500 on 22 July at exactly 05:31:50 UTC, WhaleStat reports. A noticeable thing is the little transaction fee of $1.00 for the SHIB worth over $1, 700, 000 the whale purchased. As a fact, the wallet of BlueWhale0159 is ranked number 315 ETH holding globally. However, BlueWhale0159‘s largest holding is USDC which accounts for 88.28% of his total assets. Interestingly, SHIB is just 4.8% of his/her holding. In addition, this whale also owns Tether USD (USDT) and Mana- Decentraland’s native token.

In general, the 100 ETH whales also hold Matic, CRO and Mana. However, according to WhaleStat, by the end of July, 69% of SHIB hodlers were holding it at a loss. This leaves 27% of the holders holding it at a profit while 4% at a break-even point. The report also states that 26% of the SHIB hodlers have been holding it for over one year now, while 70% owned them for a period of between one and 12 months. The other 4% of the holders are the individuals who have held the token for less than one month.

Previous Whale Purchases

It is not the first time that ETH whales have been purchasing SHIB in large quantities. It is a known fact that many whales prefer to buy and hold the SHIB Inu token. In December 2021, another whale purchased 4 trillion SHIB at a cost of $134 million. As a result, the price of the SHIB Inu token increased by 10% within 24 hours. In that instance, the SHIB comprised 26% of that whale’s total holding. Also, the top 1 000 ETH whales traded the SHIB more than any other cryptocurrency at that time. Furthermore, these whales hold MANA, GALA, ENJIN and Loopring in large amounts at that time.

In early January this year, another ETH whale called Trinity purchased 500 billion SHIB at a total cost of $10.2 million. By that time, the price of SHIB had dropped significantly, so Trinity bought the dip. Also, Trinity was ranked number 34 whale in the world. Nevertheless. he/she did not end there; he/she continued to buy more SHIB in the following months.

Why do ETH Whales buy SHIBA INU?

Since January 2022, many other ETH whales purchased SHIB. As this trend continued for a reasonably long time, some analysts investigated the reason why the ETH whales purchase the SHIBA Inu tokens.

One possible reason for ETH whales to buy and hold SHIB is because of the partnerships it is forging which may increase its utility. For example, SHIBA Inu partnered with AMC, the biggest movie theatre chain in the United States. This partnership means that AMC will accept the SHIBA Inu token as payment for its services. In another development, SHIBA Inu partnered with XcelTrip, a decentralized air travel booking platform with over 450 air lines , 2 million hotels and many car rental services. Once again, travellers will be able to pay for these services using SHIB..

Second, SHIB is making incremental gains. Burning of the SHIB could be another contributing factor to the constant rise in its price. In fact, SHIB maintains an aggressive token burning process.

Also, the SHIBA Inu developers are working on introducing the Shibarium layer-2 protocol which will increase the transaction speed and lower the gas fee. This layer will also enable the protocol to create NFTs and a metaverse. This metaverse will have 100, 595 plots of land for sale. These plots will represent various features including roads, hubs, boulevards and avenues.

Conclusion

Many ETH whales have been purchasing and holding large amounts of SHIBA Inu tokens, anticipating future price rises. There are several reasons that can lead to the increase in the value of SHIB. These include several valuable partnerships, burning of the tokens, the possible introduction of a metaverse and the Shibarium layer-2 which will enable the creation of NFTs.



Author: Mashell C., Gate.io Researcher
This article represents only the views of the researcher and does not constitute any investment suggestions.
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