3 Reasons Why Ethereum Whales Are Buying Shiba Inu (SHIB)
Shiba Inu (SHIB), the popular meme coin, has seen significant price movements recently, and a major factor driving this activity is the increased interest from Ethereum whales. But why are these large investors, typically associated with more established cryptocurrencies, accumulating SHIB? Let's explore three key reasons.
1. Supply Squeeze & Potential for Price Appreciation
Ethereum whales are known for strategic investments, and their accumulation of SHIB points towards a potential 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 becomes increasingly scarce on exchanges, potentially driving up its price. Think of it this way: if a large portion of the available SHIB is held by a few large wallets, there are fewer tokens available for general trading, increasing demand and price if overall interest remains the same or grows.
2. Adoption of SHIB for Cross-Border Payments & Emerging Utility
Shiba Inu isn't just a meme anymore; it's developing real-world utility. Shiba Inu surges 114% YTD, with Ethereum whales driving interest as they accumulate SHIB and Remittix for cross-border payments. This suggests that whales are not just speculating on price, but also recognizing the potential for SHIB to be used in practical applications, leading to long-term value and adoption.
3. Increased Whale Activity & Market Sentiment
The actions of whales often signal broader market sentiment. Whale movements on Shiba Inu gained traction after June 2025, when Ethereum's 1,000 richest list began buying huge amounts of SHIB tokens. This suggests a growing confidence in the project among sophisticated investors. 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 2025 indicates significant involvement from key players in the crypto space, fueling positive market sentiment and attracting further investment.
In conclusion, the increased accumulation of Shiba Inu by Ethereum whales can be attributed to the potential for a supply squeeze, the growing utility of SHIB in areas like cross-border payments, and the positive market sentiment signaled by their significant investment activity. Whether this trend continues remains to be seen, but it's a crucial factor to consider when analyzing the future of Shiba Inu.