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

In a new post on X, the on-chain analytics firm Santiment has discussed about how some of the top assets in the cryptocurrency sector line up

Shiba Inu is among the altcoins with the highest concentration of wealth among the largest addresses on the network, according to on-chain data.

Analytics firm Santiment recently shared a post on X discussing the percentage of the circulating supply that’s held by the ten largest wallets on the chain for some of the top assets in the crypto sector.

The ten largest addresses on any blockchain would naturally correspond to the largest investors present in the market.

Here’s a chart that shows the trend in the combined holdings for such entities for different assets in the sector:

Chainlink (LINK) used to be at the top of this list, but its supply has seen significant distribution as it’s now seventh with 31.1% of the supply in the hands of the mega whales.

Among the assets listed in the chart, USD Coin (USDC) and Dai (DAI) have the lowest percentage of their circulating supply being held by the top 10 addresses, at 19% and 24.5%, respectively.

On the other hand, Polygon and Shiba Inu are at the top of the list with 69.4% and 61.2% of their entire circulating supply being present in the top 10 addresses.

Such a high degree of centralization isn’t good news for any cryptocurrency. Not only can holdings represent influence on the market, but some protocols give preference to those with more holdings in terms of decision-making and network consensus.

This is the case for the biggest cryptocurrency, Ethereum (ETH), where its proof-of-stake (PoS) consensus mechanism means that the stakers or validators with a larger stake have a higher chance of getting to add the next block and thus, better odds at receiving rewards.

Currently, Ethereum is fifth on this list with 44% of the supply under the control of the top 10 whales. As such, the second-largest coin by market cap is also not in the best spot in terms of this metric.

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