Since the beginning of this year, amazing things have been happening within the cryptosphere. One of them is them is the sudden and “unexplainable” drop in the value of bitcoin by more than half. Another is the sudden attraction of Ethereum Whale towards another token – Shiba Inu.
Earlier this year, Ethereum Whale bags up to $3.6 million worth of Shiba Inu. But that was just the beginning. Just like Bitcoin and Ethereum fell in value, the SHIB token also fell to $0.00002071 in 24 hours. Over the week, its capitalization fell by 19.47% to $11.41 billion.
Meanwhile, the largest Ethereum whales continue to buy this token, according to WhaleStats. This week, buying intensified as the whales are buying up the failure. Reports showed that the Ethereum whales have already purchased trillions of SHIB coins.
Only one of the largest wallets invested almost $40 million in this altcoin! Other whale addresses sent to SHIB token ranged from $1 million to $12 million.
The Ethereum whales have accumulated the lion’s share of the SHIB token in circulation. An aggressive accumulation phase is observed, which indicates the bullish potential of Shiba Inu.
Aside from the Ethereum whales, several other top Ethereum holders have been scooping up Shiba Inu (CRYPTO:SHIB), according to WhaleStats. But why Are Ethereum Whales and other Ethereum investors accumulating Shiba Inu aggressively?
Likely Reasons Why Ethereum Whales Accumulated Shiba Inu
1. An Attractive Price
Within the last three months, Shiba Inu has plunged more than 70% in value, giving a much more attractive price. This might well explain why Ethereum Whales are buying Shiba Inu aggressively.
The value of Ethereum also went down quite a bit. Nevertheless, the drop of about 40% for Ethereum over the past three months isn’t as steep as SHIB token’s fall.
2. Anticipation of a Wider Adoption
The Whales wouldn’t be interested in SHIB if they didn’t think the token will likely rise significantly in the future. And one likely reason for the optimism is the anticipation that Shiba Inu could be more widely adopted going forward.
For instance, a wider adoption can occur if Robinhood later chooses to list the digital token on its trading platform. More so, the planned launch of the Shibarium layer-2 solution could spark the wider adoption of Shiba Inu. Though no one knows the exact launch date for Shibarium yet, it could happen by the middle of this year.
3. Metaverse Opportunity
Another good reason why the Ethereum whales are buying Shiba can be linked to the Shiba Inu’s metaverse opportunity. The token just recently moved into the metaverse. It is referred to as the “Shiberse” but in the past, it was called the “Oshiverse.”
This isn’t the first time that an Ethereum whale would acquire lots of SHIB tokens. Last year October, an Ethereum whale bought 277 billion SHIB coins. Also, the largest Shiba Inu position is in a dead wallet created by Vitalik Butarin, the co-founder of Ethereum. While all these expectations may not be realistic, they are pretty good argument points. Do you agree with these likely reasons? Would you also follow the Ethereum Whales to purchase Shiba Inu? Tell us in the comment section.
