The supply of Shiba Inu is the most concentrated among mainstream crypto assets—only 10 Large Investors hold 62%!.

Written by: Keshav Verma, NEWSBTC

Compiled by: Gabriel, Techub News

In a new post on platform X, on-chain analytics company Santiment shared a comparison of the percentage of supply held by the top ten wallets for some mainstream cryptocurrencies on their respective networks. The chart below shows the trend of this indicator across eight cryptocurrencies: Shiba Inu, Ethereum, Pepe, Tether (USDT), USDC, DAI, Chainlink (LINK), and Uniswap (UNI).

From the chart, it can be seen that among these assets, the stablecoin USDC has the lowest proportion of supply held in the top ten addresses, at about 27%. Chainlink and DAI follow closely, at 32% and 33% respectively. In contrast, other assets like Uniswap and Ethereum have a higher proportion of their supply controlled by these large entities, reaching 51% and 49% respectively. Particularly notable is Shiba Inu, with as much as 62% of its supply belonging to the top ten whale addresses on the network. In comparison, another meme coin on the list, Pepe, has this metric at 39%.

Overall, the supply is highly concentrated in the hands of a few addresses, which is not a positive signal for the stability of any cryptocurrency, as tokens represent power within the network. This is especially important for assets that operate on a Proof of Stake (PoS) mechanism, such as Ethereum.

As explained by Santiment,

As a retail trader, holding coins that are held in lower proportions by top whales is usually safer. If a particular asset's largest whale decides to liquidate, the risk of sudden sell-offs or price manipulation is lower.

Given this, assets such as Ethereum, Uniswap, and Shiba Inu have most or nearly all of their supply concentrated in the hands of the top ten whales, which may not be in an optimal state. Additionally, according to the Fear and Greed Index, the sentiment in the cryptocurrency market is on the verge of extreme greed. The Fear and Greed Index is created by Alternative, which derives a score between 0 and 100 by inputting multiple different factors to measure the psychological state of investors.

As shown above, the current value of the cryptocurrency fear and greed index is 73, indicating a strong sentiment of greed among traders. Historically, the market tends to move in the opposite direction of public expectations. This is especially true in extreme ranges of the index, where the likelihood of a reversal is greater. Currently, the market is still outside the extreme greed range, but only by a few units.