Ethereum’s Top 10 Addresses and Their Holdings
According to on-chain data, the top 10 Ethereum addresses have been steadily increasing their holdings. Five years ago, these addresses held only 11.2% of the total circulating supply, but now they hold 34.6%. This amounts to 27.86 million ETH, equivalent to about $51.6 billion. The concentration of supply among these whales is a recent trend, with 11% of the supply being purchased in the past year alone.
Wealth Distribution Among Bitcoin, Dogecoin, and Ethereum
When comparing Bitcoin, Dogecoin, and Ethereum, all three cryptocurrencies exhibit imbalanced wealth distribution. For Bitcoin, 0.32% of addresses hold about 80% of the supply. Similarly, 0.01% of Ethereum addresses control a similar percentage of the supply, and for Dogecoin, it’s 0.014%. However, Bitcoin’s wealth distribution is still more decentralized than Ethereum’s.
Bitcoin Supply Data for Different Wallet Ranges
Examining Bitcoin’s supply data for different wallet ranges, the largest cohort with investors owning upwards of 100,000 BTC holds 3.39% of the supply. The next group, with 10,000-100,000 BTC, has 103 investors who control 11.66% of the supply. Even if all 103 addresses from the latter group are included with the top 4, the total supply held by these investors would only be 15.05%. This highlights the greater decentralization of Bitcoin’s supply compared to Ethereum’s.
Impact on Market Stability
Having a concentrated supply held by a few addresses is not ideal for market stability, as it allows for volatility induced by a small number of players. The increasing concentration of Ethereum’s supply among the top 10 addresses raises concerns about price manipulation and control.
Hot Take
The growing dominance of the top 10 Ethereum addresses raises questions about the decentralization and fairness of the cryptocurrency. While concentration of wealth is not uncommon in the crypto space, it poses risks to market stability. Addressing this issue should be a priority for the Ethereum community to ensure a more balanced and decentralized ecosystem.
By
By
By
By