17% Of Ethereum Addresses Hold Majority Of NFTs
23 October 2021 - 4:00AM
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Ethereum NFTs have gained the most clout in the crypto space. These
NFTs have recorded sales of up to 69.3% for a single piece of
artwork. Investors are moving towards owning NFTs as a form of
long-term investment in addition to their cryptocurrency holdings.
Although other blockchains are coming up where NFTs can be minted,
the majority of it still happens on Ethereum. This is why investors
have flocked towards non-fungible tokens minted on the blockchain.
Its growing popularity has led to some striking similarities with
the pattern of holding seen in cryptocurrencies. For example, the
same way whales are a thing in cryptocurrencies, there are also NFT
whales, and new data coming out of the market shows that whales are
dominating NFTs the same way they dominate cryptocurrencies.
Related Reading | Five Hidden Gems in NFTs – Well, Not Hidden
Anymore Whales Take The Lead On NFTs Moonstream published a report
on Github analyzing the movement of non-fungible tokens over the
past six months. This time period has been very significant in the
growth of the NFT space and the report had some interesting
findings. It found that over 80% of all non-fungible tokens are
held by only 17% of wallets. Leaving less than 20% of NFTs for the
rest of the market. NFT platforms, exchanges, and most importantly,
whales, have been grabbing up non-fungible tokens at an increased
rate over the past six months, putting them at an advantage over
the rest of the market. This is mirroring the cryptocurrency market
which shows similar figures for volume held by whales and smaller
investors. Moonstream analyzed over 7 million NFTs transactions for
the past six months on the Ethereum blockchain. This analysis led
to the conclusion that the remaining 83.29% of the NFT market holds
only a handful of it. Creating Room For Nuance The data presented
in the report included NFT platforms where investors buy and sell
their NFTs. It is important to note that since these platforms also
offer storage services, NFTs being stored on the platforms are
factored into this. Small-time NFT investors could very well decide
to leave their acquisitions on these platforms to enable them to
sell easily, much like cryptocurrency investors leaving their
assets on exchanges in order to move very quickly with the market.
Related Reading | CryptoDragons: A Unique NFT Project With
Entertainment and Earning Elements In the report, Moonstream
explains that more nuance is needed in the interpretation of the
data presented, “as many of those owners are marketplaces and
clearinghouses lie OpenSea, Nifty Gateway, and other platforms of
the same ilk.” Nevertheless, just like in any market, there are
always stark inequalities. A small percentage usually controls the
largest market share and given the barriers to entry in the
non-fungible token market, small-time investors will control an
insignificant portion of the market. Featured image from Forbes,
chart from TradingView.com
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