Solana’s Wealth Concentration
According to data from CoinCarp, the top ten addresses on the Solana rich list collectively hold around 49.66 million SOL, which accounts for about 9.69% of the total circulating supply as of November 2023. The concentration of wealth increases with the top 20, 50, and 100 holders controlling 14.87%, 24.93%, and 33.41% of the tokens respectively.
FTX Major Holder of Solana
Spot On Chain, an on-chain analytics firm, revealed that FTX holds approximately 15.3 million SOL, which represents about 27% of FTX’s total Solana holdings. Additionally, defunct entities have around 2 million SOL available for potential sale.
This concentration of ownership is a growing concern for decentralization advocates, as it can lead to significant price volatility if major holders decide to move their assets.
Solana’s DeFi Dominance
Solana has a Total Value Locked (TVL) of approximately $1.4 billion in its 121 active protocols in the DeFi space. According to DefiLlama, Solana accounts for 2.65% of the overall $50 billion TVL.
Hot Take: Concerns over Wealth Concentration in Solana
The concentration of wealth among a few major holders in Solana raises concerns about decentralization and potential price volatility. With a significant percentage of the circulating supply in the hands of a few, the market can be heavily influenced by their actions. This highlights the need for greater distribution of tokens and increased decentralization within the Solana ecosystem.
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