- 61% of the supply of Shiba Inu (SHIB) is reported to be in control of the top ten wallets, raising issues of market instability and price manipulation.
- According to the report, Ethereum (ETH) has 46% of its supply held by the top ten wallets, while Chainlink’s (LINK) concentration “sits” at 33%.
The price performance of the leading crypto assets in the past few days has been an “eye sore” as the broad market lost 2% of its total valuation, dragging the market cap to $3.17 trillion. Fascinatingly, this has not been the only point of concern. The recent distribution of tokens among investors has raised the alarm about possible stability issues and increasing centralization in the market.
Researching this, CNF found that 61.3% of the total supply of Shiba Inu (SHIB), for instance, is held by its top 10 wallet addresses. According to experts, this could lead to excessive control over the market movements by a few large holders. In this case, a decision to sell could be fatal for smaller investors.
Delving into Details
Further looking into this, we discovered that similar distribution patterns could be found in some of the top assets. Ethereum has 46.1% of its supply held by its top 10 wallet addresses. Chainlink (LINK) and Toncoin (TON), however, have lower concentrations with 33.1% and 32.8% respectively.
Analyzing Santiment data on this trend, we also found that the control of a lower percentage of the supply of a token is usually healthy and underscores the decentralized distribution nature of the asset. Meanwhile, the large concentration of the asset among a few investors could also signal an increased whale confidence.
When too much supply is in the hands of a few, smaller holders may feel at a disadvantage, but when supply is more balanced, there’s usually more confidence in the asset’s price stability.
SHIB and ETH Price Analysis
Following this report, SHIB recorded a decline of 3% in the last 24 hours, extending its weekly fall to 19% to trade at $0.000015. According to our previous analysis, the asset could hit $0.000033684 once the bull market returns.
Fascinatingly, ETH is also struggling to stage a rebound from the $2.7k level, as it has declined by 2% in the last 24 hours and 17% in the last seven days. As we covered in our latest report, ETH is expected to hit $7000 this bull market.
According to Ali Martinez, the asset has traded above the 3.2 MVRV Pricing Band in each of the bullish cycles.
In every bullish cycle, Ethereum (ETH) has traded above the 3.2 MVRV Pricing Band. This level currently sits at $7,000.
LINK, which has one of the lowest concentrations among holders, is also trading at the lower boundary of a crucial resistance range. According to our market data, the asset is currently hovering around the $19 zone after recording a 24% decline in the last seven days. As highlighted in our recent article, this downtrend was triggered by a mass sell-off by whales.
