Altcoin whales hold up to 50% of the total supply of some cryptocurrencies
When it comes to whales, we often hear about Bitcoin whales, who hold large amounts of BTC. However, the data shows that Altcoin whales are no less competitive.
Altcoin whales can exert higher pressure than Bitcoin
In terms of the number of wallets holding more than 1% of the total supply, Bitcoin is still the most popular cryptocurrency. Altcoins, coins born with the mission of supposedly improving decentralization, have failed in this respect. Even Altcoin whales easily hold up to 50% of the total supply of some cryptocurrencies.
This is especially worrying in the case of staking coins. Meanwhile, centralizing a large number of tokens is likely to lead to network control. Cardano (ADA) is a name that needs attention because 39 wallet addresses hold about 40% of the ADA.
Ethereum (ETH) looks better, with 154 addresses owning 40% of the total supply of ETH. However, when Ethreum switches to Proof-of-Stake, this number of power wallets will be able to affect the entire network.
Overall, the data shows that fewer than 461 crypto wallets are holding at least 40% of the supply of the top 4 cryptocurrencies, assuming they are individual wallets.
Talking about whales and ownership by concentration of an asset
Addresses with more than 1%:$BTC 39 addrss owns 11.1%$ETH 154 addrss owns 40% $BCH 105 addrss owns 28%$LTC 128 addrss owns 47%$BSV 104 addrss owns 25%$ADA 39 addrss owns 40%$Tether 140 addrss owns 58%
— intotheblock (@intotheblock) January 9, 2020
Cryptocurrencies kept on the exchange
As for Litecoin (LTC), 128 wallet addresses are holding more than 1% of the total LTC supply. The majority of Litecoin is kept with the names of exchanges. The LTC whale was soon formed because this is a low priced currency.
The story of Tether (USDT) is entirely different. One hundred forty wallets are totaling about 58% of USDT’s total supply. It is not easy to accurately check the supply of USDT when this stable coin is issued on many different networks. There are about 4.7 billion USDT tokens.
Most of the USDT is pumped into exchanges to service spreads, margins, and futures trading. Perhaps, one of the reasons USDT focuses on some wallets is lending on exchanges.
The highly centralized Altcoin group falls into new coins and tokens. One of these is projects with development teams that hold the majority of tokens. Also, some Altcoins have the case that tokens rarely move out of wallets. Because, when the price is down, the whales leave the token and wait for the opportunity. However, this action will contribute to the price of the token, increasing the likelihood of it being discharged after the price has changed positively.
Read more:
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