Cryptocurrencies

Here’s The Cryptocurrency That Ethereum Whales Are Buying More Than Shiba Inu

Here's The Cryptocurrency That Ethereum Whales Are Buying More Than Shiba Inu

What cryptocurrency to do Ethereum (ETH 2.65% ) whales (individuals with lots of money invested) like the most? The answer, of course, is Ethereum itself. However, Ethereum whales also bet on other cryptocurrencies.

shiba inus ( SHIB 0.09% ) tops the list. At the end of February, Ethereum whales owned more than $1.3 billion of the digital token, according to whale-tracking website WhaleStats. Today, that figure exceeds $1.5 billion.

But Shiba Inu is not at the top of the non-Ethereum list for these whales. Here is the Ethereum cryptocurrency that whales are buying even more.

Image source: Getty Images.

The #2 Whale Favorite

As of March 4, Ethereum whales owned over $1.6 billion worth of FTX Token (FTT 1.61% ). The digital token accounts for nearly 18% of whales’ non-Ethereum holdings.

In a sense, it may come as a surprise that the FTX (FTT) token is the favorite token of Ethereum whales after Ether. FTT only ranks 26th among cryptocurrencies based on market capitalization. Shiba Inu comes much higher at #14.

There are many well-known and widely adopted cryptocurrencies with market caps above FTT. So why aren’t Ethereum whales picking them up instead? There is a simple explanation.

Why the FTX token?

FTT is the native token of the FTX crypto-trading exchange. This exchange has become very popular with futures traders.

CoinRanking.com ranks FTX fourth among crypto exchanges based on trading volume. FTX also ranks 4th in the CoinGecko ranking of crypto exchanges based on its proprietary trust score. This score includes web traffic, liquidity, trading activity, a cybersecurity rating, and more.

All Ethereum whales that use the FTX exchange are incentivized to strengthen their positions in FTT. The digital token can be used as collateral for futures positions. The FTX exchange lowers forward fees for traders who hold a specified amount of FTT for a specified duration. And those who hold enough FTT can get discounts on all their OTC trades on the FTX exchange.

But FTT is not completely hip related with FTX. Ethereum whales could also buy the digital token on other exchanges. For example, Binance (the top-ranked crypto exchange based on trading volume) supports buying FTT along with several other digital tokens, including its own native Binance Coin.

Other main holdings

Ethereum whales not only like Ether, FTX Token and Shiba Inu. They own over $826 million worth of USD coin ( USDC 0.00% ), one of the best stablecoins on the market. Another stablecoin, Attached ( USDT 0.01% ), also ranks at the top of the list. Ethereum whales hold over $434 million worth of Tether.

Some of the Ethereum whales seem to be fans of Polygon (MATIC 1.47% ) thus, owning nearly $380 million of the cryptocurrency. Polygon is built on the Ethereum blockchain and extends the blockchain into a multi-chain network.

If you are wondering if Ethereum whales like game coins, the answer is yes. They currently own nearly $330 million worth of Decentralized ( MANA 0.72% ) tokens. Decentraland has become one of the leading metaverse cryptocurrencies.

This article represents the opinion of the author, who may disagree with the “official” recommendation position of a high-end advice service Motley Fool. We are heterogeneous! Challenging an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and wealthier.