Which crypto do Ethereum (ETH) whales buy the most of? The answer, of course, is ETH itself. However, ETH whales are also betting on other cryptos.
Shiba Inu comes in ranked high on the list. In late Feb., ETH whales owned over $1.3 billion of the digital coin. Today, the figure currently sits at $1.5 billion.
But Shiba Inu is not at the top of the non-ETH list for these whales. Here is the crypto Ethereum whales are purchasing even more of.
The whales’ No. 2 favorite
As of March 4, ETH whales owned over $1.6 billion of FTX Token. The digital coin makes up almost 18% of the whales’ non-ETH holdings.
In one sense, it may be surprising that FTX coin is ETH whales’ No. 2 favorite coin after Ether. FTT is ranked only 26th among cryptos based on market capitalization. Shiba Inu comes in ranked much higher at number 14.
There are a lot of well-known and widely adopted cryptos with larger market caps than FTT. So why aren’t ETH whales scooping all of them up instead? There is a simple explanation.
Why FTX Token?
FTT is the native coin of the FTX cryptocurrency-trading exchange. This exchange has started to be very popular with the futures traders.
FTX is fourth among cryptocurrency exchanges based on its trading volume. FTX also comes in ranked at number 4 on CoinGecko’s ranking of cryptocurrency exchanges based on the proprietary trust score it has received. This score includes liquidity, web traffic, a cybersecurity evaluation, trading activity and more.
Any ETH whales who utilize the FTX exchange have many incentives to add to their current positions in FTT. The digital coin can be used as a type of collateral for positions in futures. The FTX exchange decreases futures fees for investors who hold a certain amount of FTT for a specified length of time. And traders who hold enough FTT could get rebates on 100 percent their over-the-counter investments on the FTX exchange.
But FTT is not completely joined with FTX. ETH whales might buy the digital coin on other exchanges as well. For instance, Binance (the top-ranked cryptocurrency exchange based on its trading volume) supports purchasing FTT with several other digital coins, including its own native coin called Binance.