- 61% of Shiba Inu’s (SHIB) supply is said to be controlled by the top ten wallets, raising questions about market instability and price manipulation.
- According to the report, 46% of Ethereum’s (ETH) supply is held by the top ten wallets, while Chainlink’s (LINK) concentration stands at 33%.
The price performance of the major crypto-assets over the past few days has been eye-watering, with the broader market losing 2% of its total value, bringing market capitalization down to $3.17 trillion. Fascinatingly, this is not the only cause for concern. The recent distribution of tokens among investors has raised alarm bells about potential stability issues and increasing market centralization.
The CNF found that 61.3% of the total supply of Shiba Inu (SHIB), for example, is held by the top 10 portfolio addresses. According to experts, this could lead to excessive control of market movements by a few large holders. In this case, the decision to sell could be fatal for smaller investors.
Getting into the details
Digging deeper, we discovered that similar distribution patterns could be found in some of the major assets. Ethereum is 46.1% owned by the top 10 wallet addresses. Chainlink (LINK) and Toncoin (TON), however, have lower concentrations at 33.1% and 32.8% respectively.
Analyzing Santiment ‘s data on this trend, we also found that control of a lower percentage of a token’s supply is generally healthy and underscores the decentralized distribution nature of the asset. On the other hand, a high concentration of assets in the hands of a few investors can also signal increased confidence on the part of whales.
When supply is too great, smaller holders may feel disadvantaged, but when supply is more balanced, confidence in the asset’s price stability is generally greater.
Analysis of SHIB and ETH prices
Following this report, SHIB recorded a 3% drop over the last 24 hours, extending its weekly fall to 19% to trade at $0.000015. According to our previous analysis, the asset could reach $0.000033684 once the bull market returns.
Fascinatingly, ETH is also struggling to stage a bounce from the $2.7k level, having fallen 2% in the last 24 hours and 17% in the last seven days. As we noted in our last report , ETH should reach $7k in this bull market.
According to Ali Martinez, the asset has traded above the 3.2 MVRV pricing band in each of the bullish cycles.
In every bullish cycle, Ethereum (ETH) has traded above the 3.2 MVRV pricing band. This level currently stands at $7,000.
LINK, which has one of the lowest concentrations among holders, is also trading at the lower end of a crucial resistance band. According to our market data, the asset is currently hovering around the $19 area, after registering a 24% decline over the past seven days. As we pointed out in our recent article, this downtrend was triggered by a massive whale sale.
