After another massive 50 billion acquisition of Shiba Inu, many are wondering exactly why Ethereum whales or simply big cryptocurrency market participants are constantly buying trillions of SHIBs worth millions of dollars. More on why whales love memecoin so much…
Whales try to take control of SHIB
According to WhaleStats, a platform that tracks the buy or sell movements of crypto whales, the popular memecoin Shiba Inu remains the largest position in USD value among Ethereum whales, with major wallets holding around $1.3 billion in SHIB. The whales’ desire to control the circulation of the altcoin, which is ranked 15th by market cap, explains such a strong dominance.
According to market experts, the high concentration of supply in the hands of whales is often considered “bullish” by crypto enthusiasts as they prefer to accumulate assets rather than redistribute them. In addition, with a high percentage of supply held by individual or institutional investors, the market often experiences more selling pressure than otherwise. On the other hand, SHIB is trading at $0.00002441 at the time of writing, down 5.33 percent in the last week and 2.38 percent in the last 24 hours.
Shiba Inu, cheap and has potential
While the whales whose movements we closely monitor as Kriptokoin.com would control the circulating supply, they would not actively buy an asset at a discount as big as seen in the Shiba Inu. According to TradingView data, SHIB has lost more than 70 percent of its value since ATH. This makes the Risk/Reward ratio attractive to investors in case of another rally.
Memecoin was launched after Dogecoin’s massive rise in 2021. This usually means that the asset has strong rally potential with no root cause behind it. “Memecoin rallies” are usually sponsored by individual traders and last only a few weeks in the best-case scenario. While this type of rally gives investors and traders a hundred percent gain, it tends to disappear quickly and often loses 90 percent of its value.
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