Individuals who have a lot of money invested in Ethereum don’t always limit themselves to just one cryptocurrency. They often spread their wealth around.
That’s exactly what has been happening recently, according to crypto tracking website WhaleStats. Ethereum whales are especially buying these three cryptocurrencies hand over fist.
1. USD Coin
USD Coin (USDC 0.13%) ranks as the favorite cryptocurrency for the top 100 Ethereum whales these days. And it’s not even a close contest based on the average volume amount.
Of course, USD Coin hasn’t delivered an appreciable gain for these investors. That’s to be expected for a stablecoin. USD Coin is pegged on a 1-for-1 basis to the U.S. dollar. Its price typically doesn’t fluctuate very much.
However, USD Coin’s market cap can change somewhat based on its adoption. Over the last year, its market cap has fallen a little. This small decline is largely due to the broader market factors that caused interest in cryptocurrencies to decrease.
But Ethereum whales and many other cryptocurrency traders continue to view USD Coin as a safe haven. The adoption of the stablecoin has been good news for Coinbase Global, which helped create USD Coin with fintech company Circle.
Ethereum whales are also buying the world’s most widely traded stablecoin — Tether (USDT 0.11%). With a market cap of nearly $67.8 billion, Tether trails behind only Bitcoin and Ethereum among the biggest cryptocurrencies.
Like USD Coin, Tether’s price doesn’t move very much. This stability is one of the main attractions for investors.
In addition, owners of the stablecoin can stake their tokens and earn interest. For example, crypto trading platform YouHodler currently pays an annualized interest rate of 8.32% for staking Tether.
However, Tether isn’t quite as popular as it once was. Its market cap topped $83 billion in the early part of May 2022. Today, the stablecoin’s market cap is below $68 billion.
Chiliz (CHZ -1.87%) might be the most surprising cryptocurrency that Ethereum whales are buying hand over fist. The digital token trails only USD Coin and Tether based on average trading volume among the top 100 Ethereum whales. However, Chiliz’s market cap of around $906 million puts it only in 53rd place among all cryptocurrencies, according to CoinMarketCap.
Like several other cryptocurrencies, Chiliz is off to a great start in 2023. Its price has skyrocketed close to 40% year to date.
Why do Ethereum whales like Chiliz so much? It’s probably because Chiliz is the exclusive cryptocurrency used on the Socios.com sports platform. Sports fans can engage with many of their favorite sports teams across the world (including the Boston Celtics, FC Barcelona, and Juventus).
Fans on Socios.com can use Chiliz to buy tokens that allow them to have a stake in their favorite team. They can even influence things such as what team captains wear on their armbands.
Are these cryptocurrencies good picks for non-whales?
Just because Ethereum whales are buying these three cryptocurrencies the most doesn’t mean they’re automatically good picks for investors who aren’t whales. Stablecoins such as USD Coin and Tether aren’t as risky as most cryptocurrencies. However, they don’t offer as much upside potential, either. Chiliz might be more attractive to some sports fans, but not as much to other individuals.