Shiba Inu’s 10 Largest Whales Hold 61% Of Supply, A Worrying Fact?

by

As a seasoned analyst with over two decades of experience in financial markets, I’ve seen my fair share of trends and patterns. When it comes to cryptocurrencies, the concentration of wealth among the largest addresses is something that has always piqued my interest.

The distribution of wealth within the Shiba Inu network, as indicated by on-chain data, places it among the altcoins where a significant portion of the total supply is held by a few large address holders.

Shiba Inu, Polygon Have A High Concentration Of Supply On Top 10 Whales

As a crypto investor, I recently came across an insightful post from X by Santiment, an on-chain analytics company, that delved into the distribution of power among top assets within the cryptocurrency sector. Specifically, they analyzed how much of each asset’s circulating supply is controlled by the ten largest wallets in their respective networks.

On any blockchain, it’s only logical that the top ten addresses represent the biggest market investors. These individuals or entities stand out even among the ‘whales’, a term used to describe large investors in financial markets.

As an analyst, I’ve been given a chart from our firm that illustrates the evolution of these entities’ collective investments across various assets within their sector over time. This visualization offers valuable insights into investment trends and patterns.

Shiba Inu’s 10 Largest Whales Hold 61% Of Supply, A Worrying Fact?

It’s clear from the graph that Polygon (MATIC) and Shiba Inu (SHIB) are leading coins in their sector based on this particular measure. Interestingly, the top 10 wallets account for about 69.4% of the total circulating supply of MATIC, compared to 61.2% for SHIB at present.

Previously, Chainlink (LINK) held the number one spot, but due to a substantial increase in its circulation, it now ranks seventh. Approximately 31.1% of the coin’s total supply is currently controlled by large investors or ‘mega whales’.

Apart from Polygon and Shiba Inu, Uniswap (UNI) and Pepe (PEPE) have a significant portion of their total supply concentrated among the top 10 wallets. Specifically, about 50.8% of UNI’s supply and approximately 46.1% of PEPE’s supply are held by these leading addresses.

Of course, it’s generally detrimental for any cryptocurrency when wealth becomes concentrated, because holdings can translate into market power. Furthermore, certain protocols may lean towards individuals with larger holdings when it comes to making decisions and reaching network agreement.

Among all cryptocurrencies, it’s significant to note Ethereum (ETH), as its proof-of-stake (PoS) system makes the chances of adding the subsequent block and earning rewards more favorable for those with a larger stake or role in validating transactions. In simpler terms, if you have a substantial amount of Ethereum, your chances of being selected to validate the next block increase, giving you better opportunities to receive rewards.

At present, among the top ten holders, approximately 44% of Ethereum’s total supply is held. Consequently, being the second most capitalized digital currency on the list, it doesn’t fare well when considering this specific ownership distribution measure.

In the provided chart, USD Coin (USDC) and Dai (DAI) show significant differences in their respective percentages. Specifically, USDC is at 19%, whereas DAI stands at 24.5%.

Investments in cryptocurrencies like Polygon, Shiba Inu, and others with a significant level of centralization might potentially be unstable due to this concentration of control. On the other hand, coins where a smaller percentage is held by large whale investors could theoretically be safer choices, as their distribution is more dispersed.

SHIB Price

At the time of writing, Shiba Inu is trading around $0.0000141, down almost 2% over the past day.

Shiba Inu’s 10 Largest Whales Hold 61% Of Supply, A Worrying Fact?

Read More

2024-08-30 23:42