Santiment has conducted an analysis of the supply distribution of Ethereum-based assets, revealing that a significant portion of altcoins is held by only the top ten wallets.
High Centralization of Altcoins
According to the report, Shiba Inu (SHIB) has the highest centralization rate, with 62.3% of its total supply controlled by the top 10 wallets. Uniswap (UNI) is second with 52.2%, followed by Ethereum (ETH) with 51.0%.
Risks Associated with Centralization
Santiment emphasizes that such concentration of assets in a few large wallets poses risks for investors, as it could lead to sharper price fluctuations. Notably, three out of the seven altcoins on the list are stablecoins.
Overall Findings on Ethereum Assets
The analysis also touches upon many other altcoins, including Tether (USDT) at 40.5%, Pepe (PEPE) at 39.4%, Chainlink (LINK) at 31.5%, Dai (DAI) at 31.0%, and USD Coin (USDC) at 28.6%. This data raises important discussions about centralization within the cryptocurrency market.
The Santiment report highlights the importance of considering centralization in assessing risks within the cryptocurrency market, especially for assets concentrated in the hands of a limited number of wallets.
