Which cryptocurrency do Ethereum ( ETH -0.66% ) whales (people with some huge cash invested) like essentially the most? The reply, in fact, is Ethereum itself. Nonetheless, Ethereum whales are also betting on different cryptocurrencies.
Shiba Inu ( SHIB -2.17% ) ranks excessive on the checklist. In late February, Ethereum whales owned more than $1.3 billion of the digital token, in response to whale-tracking web site WhaleStats. At the moment, the determine tops $1.5 billion.
However Shiba Inu is not on the prime of the non-Ethereum checklist for these whales. This 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 almost 18% of the whales’ non-Ethereum holdings.
In a single sense, it may be shocking that FTX Token (FTT) is Ethereum whales’ No. 2 favourite token after Ether. FTT ranks solely twenty sixth amongst cryptocurrencies based mostly on market cap. Shiba Inu is available in a lot larger at No. 14.
There are many well-known and extensively adopted cryptocurrencies with larger market caps than FTT. So why aren’t Ethereum whales scooping them up as an alternative? There is a easy rationalization.
Why FTX Token?
FTT is the native token of the FTX crypto-trading trade. This trade has grow to be extremely popular with futures merchants.
CoinRanking.com lists FTX as fourth amongst crypto exchanges based mostly on buying and selling quantity. FTX additionally is available in at No. 4 on CoinGecko’s rating of crypto exchanges based mostly on its proprietary belief rating. This rating consists of net site visitors, liquidity, buying and selling exercise, a cybersecurity analysis, and extra.
Any Ethereum whales who use the FTX trade have incentives to construct up their positions in FTT. The digital token can be utilized as collateral for positions in futures. The FTX trade 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 trade.
However FTT is not utterly joined on the hip with FTX. Ethereum whales might purchase the digital token on different exchanges as nicely. For instance, Binance (the top-ranked crypto trade based mostly 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 do not like 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 0.00% ), additionally ranks excessive on the checklist. Ethereum whales maintain greater than $434 million of Tether.
Among the Ethereum whales look like followers of Polygon ( MATIC -1.06% ) as nicely, proudly owning almost $380 million of the cryptocurrency. Polygon is constructed on the Ethereum blockchain and extends the blockchain right into a multichain community.
If you happen to’re questioning if Ethereum whales are into gaming coins in any respect, the reply is sure. They at present personal almost $330 million of Decentraland ( MANA -0.83% ) tokens. Decentraland has emerged as one of many main metaverse cryptocurrencies.
This text represents the opinion of the author, who could disagree with the “official” advice place of a Motley Idiot premium advisory service. We’re motley! Questioning an investing thesis – even one among our personal – helps us all assume critically about investing and make choices that assist us grow to be smarter, happier, and richer.