The concentration of cryptocurrencies among large wallets plays a crucial role in market stability and investor confidence. Recent data highlights significant disparity in supply distribution across major altcoins.
Crypto Whale Holdings
Santiment's analysis reveals the concentration of cryptocurrency assets among the top 10 largest wallets for four major altcoins. The meme coin Shiba Inu (SHIB) has the highest concentration, with 61.3% held by its top 10 wallets, indicating a high level of centralization. If these holders decide to sell, it could trigger steep price declines. Ethereum (ETH) shows concentration at 46.1%, followed by Chainlink (LINK) at 33.1% and Toncoin (TON) at 32.8%. Lower concentration generally indicates a more decentralized distribution, enhancing market stability.
Crypto Market Correction
Ethereum has shed more than 4% over the past 24 hours, trading below $2,800. Chainlink experienced a similar correction and is trading near $18.80. Toncoin fell by more than 3% but held steady above $3.70. Shiba Inu was the largest loser, declining by over 6%, trading around $0.0000149.
Potential Risks and Market Stability
High concentration of crypto assets among a few can signal whale confidence, positively impacting price stability. However, it also raises concerns about manipulation, affecting smaller investors. A more even distribution can enhance investor trust and market stability in the long term.
The concentration of crypto assets among large holders plays a significant role in the market. While manipulation risk is high, the confidence of large investors may help stabilize the market.
