Shiba Inu whales are still averaging down on the asset, hoping for a swift recovery in the future
Following the slight 5% rally in SHIB’s price in the market, an anonymous whale seized 271 billion tokens worth over $6 million. This isn’t Shiba Inu’s first big purchase in recent days, as the top 500 Ethereum wallets grabbed billions of tokens.
At a certain point, the total USD value of Shiba Inu holdings became the largest on Ethereum network, surpassing its main competitor, FTX Token (FTT), once again. But due to the negative price performance on the market, SHIB lost its superiority and now remains in second place.
Why do whales buy Shiba Inus?
While the average person would most likely avoid buying and even trading the asset, owners of whales and large wallets think differently and most likely accumulate the asset instead of opening new positions.
As the WhaleStats tracking service suggests, the largest Ethereum addresses that buy additional Shiba Inu tokens already own a certain amount of tokens and are simply averaging down their position.
By averaging their assets, investors are able to take advantage of every short-term and long-term bounce in the market. Since assets like Shiba Inu tend to rally by hundreds or even thousands of percent at times, whales prefer to hold onto them instead of actively trading or speculating in the market.
Who is considered a whale?
The WhaleStats tracking service usually considers the top 100 wallets of the Ethereum network as “whales” since those wallets usually own more than $400 million worth of different cryptocurrencies. The top excludes wallets related to centralized or decentralized exchanges, escrow services and OTC desks.
The top 5 Ethereum rich list on WhaleStats owns over $45 billion worth of cryptocurrencies and non-fungible digital assets.
