Which cryptocurrency do Ethereum ( ETH 3.56% ) whales (people with some huge cash invested) like probably the most? The reply, after all, is Ethereum itself. Nevertheless, Ethereum whales are also betting on different cryptocurrencies.
Shiba Inu ( SHIB 1.10% ) ranks excessive on the record. In late February, Ethereum whales owned more than $1.3 billion of the digital token, in line with whale-tracking web site WhaleStats. Right this moment, the determine tops $1.5 billion.
However Shiba Inu is not on the prime of the non-Ethereum record for these whales. Here is the cryptocurrency Ethereum whales are shopping for much more of.
The whales’ No. 2 favourite
As of March 4, Ethereum whales owned greater than $1.6 billion of FTX Token ( FTT -3.06% ). The digital token makes up practically 18% of the whales’ non-Ethereum holdings.
In a single sense, it could be shocking that FTX Token (FTT) is Ethereum whales’ No. 2 favourite token after Ether. FTT ranks solely twenty sixth amongst cryptocurrencies primarily based on market cap. Shiba Inu is available in a lot increased at No. 14.
There are many well-known and extensively adopted cryptocurrencies with better market caps than FTT. So why aren’t Ethereum whales scooping them up as an alternative? There is a easy clarification.
Why FTX Token?
FTT is the native token of the FTX crypto-trading change. This change has turn into extremely popular with futures merchants.
CoinRanking.com lists FTX as fourth amongst crypto exchanges primarily based on buying and selling quantity. FTX additionally is available in at No. 4 on CoinGecko’s rating of crypto exchanges primarily based on its proprietary belief rating. This rating consists of internet visitors, liquidity, buying and selling exercise, a cybersecurity analysis, and extra.
Any Ethereum whales who use the FTX change have incentives to construct up their positions in FTT. The digital token can be utilized as collateral for positions in futures. The FTX change reduces futures charges for merchants who maintain a specified quantity of FTT for a specified time. And those that maintain sufficient FTT can get rebates on all of their over-the-counter buying and selling on the FTX change.
However FTT is not fully joined on the hip with FTX. Ethereum whales might purchase the digital token on different exchanges as properly. For instance, Binance (the top-ranked crypto change primarily based on buying and selling quantity) helps shopping for FTT with a number of different digital tokens, together with its personal native Binance Coin.
Different prime holdings
Ethereum whales don’t love simply Ether, FTX Token, and Shiba Inu. They personal greater than $826 million price of USD Coin ( USDC -0.01% ), one of many prime stablecoins in the marketplace. One other stablecoin, Tether ( USDT 0.01% ), additionally ranks excessive on the record. Ethereum whales maintain greater than $434 million of Tether.
Among the Ethereum whales look like followers of Polygon ( MATIC 3.86% ) as properly, proudly owning practically $380 million of the cryptocurrency. Polygon is constructed on the Ethereum blockchain and extends the blockchain right into a multichain community.
When you’re questioning if Ethereum whales are into gaming coins in any respect, the reply is sure. They presently personal practically $330 million of Decentraland ( MANA 3.89% ) tokens. Decentraland has emerged as one of many main metaverse cryptocurrencies.
This text represents the opinion of the author, who might disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis – even considered one of our personal – helps us all suppose critically about investing and make selections that assist us turn into smarter, happier, and richer.