2 Important Reasons Why Ethereum Whales Are Still Buying Shiba Inu

As the holidays approach, Ethereum whales are at work accumulating DeFi tokens and meme coins such as SHIB. Following another large purchase of 50 billion Shiba Inu tokens, it is important to break down why exactly Ethereum whales, or simply large cryptocurrency market participants, are constantly investing in SHIB. Here are 2 important reasons why Ethereum whales are still purchasing Shiba Inu tokens:

1. Shiba Inu is at a Massive Discount

Shiba Inu is trading with four ‘zeroes’ in the indices and is seen as a low-hanging fruit that can turn ripe anytime in the future. This presents a significant opportunity for whales to accumulate large quantities of SHIB at relatively low prices. According to data from Whalestats, a tracker for large crypto investors, Ethereum whales have shown more interest in Shiba Inu (SHIB) than Polygon (MATIC). Over the past few days, a surge in whale activity indicates a strong belief in SHIB's potential future growth.

2. Whale Accumulation May Cause a Supply Squeeze

Data from Santiment shows that whales hold 530 trillion SHIB tokens since January 2025. This accumulation may cause a supply squeeze for the top meme coin as SHIB tokens become increasingly scarce on exchanges. This scarcity could drive up the price of SHIB significantly, benefiting those who have already accumulated large holdings. Based on data from WhaleStats, there is a 44.44% spike in active whale addresses, as these large wallet investors interact with billions of Shiba Inu coins. The top wallets are actively increasing their SHIB holdings, further contributing to the potential for a supply squeeze.