According to blockchain analytics firm Glassnode, bitcoin Whales’ dominance continues to decline, while long-term owners’ safes continue to grow. Here are the details.
Bitcoin Adoption Increases
In recent years, and most importantly since 2017, the adoption rate of Bitcoin has increased drastically with the contribution of a large number of individual and institutional currencies entering the crypto space.
Data from Statista, worldwide from December 2013 to November 22, 2021 blockchain It shows that the number of wallet users has increased by a staggering 8,810.11%, with the total cryptocurrency wallets currently created at 79.3 million. But the biggest adoption was witnessed between January 2020 and January 2021. This is attributed to the emergence of peer-to-peer (P2P) trading and entry into markets such as Africa and Asia.
In the early years of existence, there was limited access to Bitcoin. In 2013, more than 50% of all Bitcoins in circulation were still controlled by whales.
As it is known, Whales 1000+ BTC are defined as holding assets. Exchanges, ETFs, and publicly traded company assets are excluded from this group as their BTC is owned by a large number of individuals/shareholders.
Whale dominance declined over time. As can be seen in the chart below, as of January 1, 2022, cumulatively held by whales bitcoin Its number reached an all-time low of 24%.
The Long Road to Decentralization
In 2021, a total of 1,846 million was invested by its Long-Term owners. BTC Short-Term holders removed 1,428 Million BTC from their holdings.
Generally, crypto- Minnows (addresses with 10-1000 BTC) and institutional reserves continued to accumulate, as publicly held reserves such as stock exchanges and ETFs recorded a decline in Bitcoin holdings.
Elon Musk Although some crypto users, including some crypto users, have expressed concerns about the decentralization of Bitcoin, Willy Woo estimates that Bitcoin users could grow 3x worldwide to reach 1 Billion users before 2025, and fully decentralize the cryptocurrency. The fact that the share of whales in the total supply has decreased over time also supports this estimation.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.