A recent Twitter post from Santiment highlighted interesting data about the supply distribution of major cryptocurrencies such as USD Coin (USDC), Chainlink (LINK), and Shiba Inu (SHIB).
Supply Distribution of Major Cryptocurrencies
The data reveals that 27% of USDC's supply and 32% of LINK's supply are held by their top 10 wallets, while 62% of Shiba Inu's supply is concentrated among its 10 whales. This disparity offers insight into the level of decentralization and potential risks of these cryptocurrencies.
Risks Associated with Ownership Concentration
For retail traders, this distribution is crucial. Assets with lower whale control, such as USDC and LINK, may pose less risk of sudden price dumps or manipulation. The high concentration of Shiba Inu reflects its gain in the meme coin market in 2021, where early adopters amassed significant holdings.
Market Impact and Importance of Whale Control Understanding
USDC's stablecoin status and LINK's oracle utility naturally lend themselves to wider distribution, challenging the notion that high-value cryptos are inherently whale-dominated. However, Shiba Inu’s high concentration underlines the risks of centralized control, where whale exits could trigger market chaos.
Understanding whale impact in the crypto market remains a key aspect for traders seeking to balance stability against speculative gains.
