• IntoTheBlock data reveals a massive imbalance in wealth distribution among Ethereum (ETH) and Dogecoin (DOGE) holders.
• Around 80% of the supply of both ETH and DOGE are owned by 0.01% of the total addresses holding the tokens, while 0.32% of Bitcoin (BTC) addresses own 80% of the BTC supply.
• This disparity in wealth concentration can have an outsized influence on a blockchain project’s ecosystem.
Imbalance in Wealth Distribution
Analytics firm IntoTheBlock has released data revealing a massive imbalance in wealth distribution among Ethereum (ETH) and Dogecoin (DOGE) holders. The study suggests that around 80% of the supply of both ETH and DOGE are owned by just about 0.01% of the total addresses holding these tokens, while 0.32% of Bitcoin (BTC) addresses own 80% of the BTC supply.
Outsized Influence on Ecosystems
When only a small number of individuals hold such a large percentage of crypto assets, they can have an outsized influence on that crypto project’s ecosystem, warns IntoTheBlock. The firm also points to its comprehensive holder composition matrix which not only provides insight into asset ownership when dealing with smaller markets cap and liquidity, but also offers details on BTC holdings within wallets – four addresses reportedly possess more than 100,000 BTC each for a combined 660,000 worth approximately $19 billion at time of writing, amounting to 3.39%.
Increasingly Concentrated Supply
Conversely, 52%, or 25 million addresses own up to 0.001 BTC each for a total 5120 coins worth $149 million combined – representing just 0.03%. As such figures indicate an increasingly concentrated supply with vast amounts held by few individuals investing in cryptos – this knowledge is important for strategizing investments and understanding how certain digital assets function within their ecosystems overall.
Holder Composition Matrix
IntoTheBlock’s holder composition matrix allows users to analyze the concentration level within any given network as it pertains to asset ownership across wallets and accounts – providing insights into market activity that would otherwise be unavailable without such analysis tools available to traders and investors alike when dealing with cryptocurrencies or any other type investment class or asset type .
Considerations When Investing
Given these findings from IntoTheBlock’s research it becomes evident that those looking to invest should take into consideration factors such as wealth concentration when assessing potential investments as it could provide valuable information about future performance and possible outcomes associated with particular assets or projects .