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ETH Whales are Staking up Shiba Inu Amidst the Stablecoin Collapse

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If you think Ethereum whales are giving up on SHIB after its drastic fall, then you might be wrong.

Cryptocurrency Shiba Inu is the most held token among the wealthiest Ethereum whales. Whales in the cryptocurrency world is a term used to describe individuals or institutions that hold large amounts of coins of a certain cryptocurrency. According to Whale Stats, a crypto whale tracker, Ethereum whales have emerged as one of the largest holders of Shiba Inu, holding up to US$1 billion SHIB. In the last seven days, Shiba Inu has fallen by 29.05 percent and its current price is US$0.00001259, still, Ethereum whales are staking up Shiba Inu amidst the stablecoin collapse.

Why Should We Choose Shiba Inu

Once upon a time, there was a very special dog. That dog was a Shiba Inu, and this dog-inspired millions of people around the world to invest money into tokens with the dog’s image on them.

According to the SHIBA INU website, SHIB is the “DOGECOIN KILLER” and is listed on their own ShibaSwap, a DEX. The Shiba Inu coin was created anonymously in August 2020 under the pseudonym “Ryoshi.” Ryoshi says himself that he is a nobody and not important and that the efforts to unmask his identity, even if successful, would be underwhelming.

This meme coin quickly gained speed and value, as a community of investors was drawn in by the cute charm of the coin paired with headlines and tweets from personalities like Elon Musk and Vitalik Buterin. Vitalik Buterin was long believed to be the originator of Shiba Inu but denied such rumors on the Lex Fridman podcast on June 5, 2021.

Increasing trust in the Shiba Inu ecosystem can also be considered as one reason why Shiba should be part of long-term investment. There has been news of Ethereum whales purchasing Shiba Inu tokens in bulk. Whales are the ones who own a great deal of cryptocurrency. If the ETH whales are shifting to Shiba Inu, it is evidence of increasing trust for the Shiba Inu ecosystem. The fact that Shiba Inu developers are transforming the coin into more than a “Meme Token” is attracting the big whales towards it. This year this meme coin is believed to be launching a layer-2 scaling solution and also entering the world of the metaverse.

Another reason Shiba Inu has garnered interest among whales is after the meme coin launched its metaverse, with 100,595 plots of virtual lands. In the case of the Shiba Inu metaverse, some virtual lands will remain open to all in the metaverse. These lands will represent roads (corridors): Avenues, Boulevards, and Hubs, however, other lands will be available for purchase.

Understanding the context

As you know at present, the top Ethereum whales don’t own as much of Shiba Inu as they have in the past. Whalestats.com tracks the top wallets on the Ethereum blockchain. As of early March, Ethereum whales owned more than US$1.5 billion of Shiba Inu. Today, the total has declined to around US$824 million. 

But if you think Ethereum whales are giving up on SHIB then you might be wrong. The biggest investors appear to like Shiba Inu more than any other cryptocurrency these days. Ethereum whales now hold more SHIB tokens than any token other than Ether, according to Whalestats. Back in February, that honor belonged to FTX (FTT 1.11%). 

The whales have divested much more of FTX over the past few months than they have of Shiba Inu. In early March, the top Ethereum investors owned more than $1.6 billion of FTX. Today, that total has been more than cut in half to around $744 million. During the same period, top Ethereum whales have slashed their positions in Decentraland (MANA 3.90%) by more than 60%.

On the other hand, deep-pocketed Ethereum wallets have increased their stakes in stablecoin Tether (USDT -0.62%) in recent months. What we’re seeing happen is the same phenomenon that’s taking place in the stock market. Investors are shifting at least some of their money from more aggressive assets into more conservative assets. 

But that doesn’t mean that whales have given up on Shiba Inu. There are nearly 824 million reasons to think otherwise.

FTX had risen up the list for the largest number of tokens held by Ethereum whales. These whale addresses, which have between 10,000 and 1 million ETH in their balance, have diversified their portfolios into other altcoins. SHIB, who made a name for himself last year, made the top 10 holdings list for these holsters and in no time became a favorite among these investors.

On a concluding note, Shiba is an altcoin, implying that a strong community is requisite for the success of Shiba. Fortunately for the Shiba ecosystem, it is backed by a strong community, and it had 43 more million views than Bitcoin in 2021. For Shiba Inu to rise again and achieve an all-time high, it must be backed by the bulls of this community.

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