Written by: Keshav Verma, NEWSBTC
Compiled by: Gabriel, Techub News
In a new post on X platform, on-chain analytics company Santiment shared a comparison of the percentage of supply held by the top 10 wallets in various mainstream cryptocurrencies' networks.
The following chart shows the trend of this metric across eight cryptocurrencies: Shiba Inu, ETH, Pepe, USDT, USDC, Dai, Chainlink, and Uniswap.
From the chart, it can be seen that among these assets, the stablecoin USDC has the lowest supply percentage held by the top 10 addresses, at around 27%. Chainlink and Dai follow closely, at 32% and 33% respectively. Other assets like Uniswap and ETH have a higher proportion of supply controlled by these large entities, reaching 51% and 49%. Notably, Shiba Inu stands out, with as much as 62% of its supply belonging to the top 10 whale addresses. In comparison, another meme coin on the list, Pepe, has a figure of 39%.
Overall, a high concentration of supply in a few addresses is not a positive signal for the stability of any cryptocurrency, as tokens represent power within the network. This is particularly important for assets running on a Proof of Stake (PoS) mechanism, such as ETH.
As Santiment explained,
As a retail trader, it is usually safer to hold coins with a lower percentage held by top whales. If the largest whales of an asset decide to sell, the risk of sudden selling or price manipulation is lower.
Given this, assets like ETH, Uniswap, and Shiba Inu, where most or nearly most of the supply is concentrated in the top 10 whales, may not be in the best condition. Additionally, according to the Fear and Greed Index, the cryptocurrency market sentiment is on the edge of extreme greed. The Fear and Greed Index, created by Alternative, derives a score between 0 and 100 by inputting multiple different factors to measure investors' psychological state.
As shown above, the current value of the cryptocurrency Fear and Greed Index is 73, indicating a strong greedy sentiment among traders. Historically, markets tend to move in a direction opposite to mass expectations. Especially in the extreme ranges of the index, the possibility of a reversal is greater. Currently, the market is still outside the extreme greed zone, but only a few units away.
