17% of addresses have snatched 80% of all Ethereum NFTs since April. According to a study, the top 16.71% of all NFT hodlers on Ethereum had 80.98% of NFTs between April 1 and September 25. cryptocoin.com We look at the details.
Ethereum NFTs to whales
Open-source blockchain analytics firm Moonstream has released a report finding that around 17% of addresses control over 80% of all NFTs on Ethereum. The report was published on October 21, and the analysis was done on more than 7 million NFT transactions on the Ethereum blockchain between April 1 and September 25, 2021. The report found that whales, NFT platforms and exchanges that make up the top 16.71% of all addresses own 80.98% of NFTs on Ethereum. The remaining 83.29% of NFT holders were only able to capture “a handful of tokens” during this time frame. “This last statistic requires a bit more nuance in its interpretation, but since most of these holders are marketplaces and clearinghouses like OpenSea, Nifty Gateway, and other platforms of the same kind,” Moonstream said.
The numbers seem to bring to mind the Pareto Principle, or 80/20 rule, a common factor across different markets and industries. The principle is based on the idea that approximately 80% of the results are due to 20% of the causes. In response to the report, Reddit user “xddemonesque” said, “It’s fascinating to see the Pareto principle being more or less taken to be avant-garde and traditionally ‘irrational’ in a market.”
The report is based on ERC 721
Moonstream’s dataset focuses on ERC 721 tokens and does not contain any data from Layer 2 networks such as Polygon and does not source data from central Application Programming Interface (APIs). The report states: “Our scanning of these 1,145,767 blocks yielded transfer activity for 7,020,950 tokens from 9,292 NFT contracts at 727,102 addresses. These mining activities and transfers form the core of the dataset, the report says.
While Moonstream highlighted the “major disparity” of NFT ownership on Ethereum, the firm argued that the NFT market is still open enough for small investors to participate, noting that the majority of NFT holders are small-time traders who can buy their own coins. The report said: “What this data shows us is that the Ethereum NFT market is open in the sense that the vast majority of its participants are small-time buyers who probably make their purchases manually. Barriers to entry are minimal for those who want to join this market.”
Contact us to be instantly informed about the last minute developments. twitter‘in, Facebookin and InstagramFollow and Telegram and YouTube join our channel!
Disclaimer: The articles and articles on Kriptokoin.com do not constitute investment advice. Cryptokoin.com does not recommend buying or selling any cryptocurrencies or digital assets, nor is Kriptokoin.com an investment advisor. Therefore, Kriptokoin.com and the authors of the articles on the site cannot be held responsible for your investment decisions. Readers should do their own research before taking any action regarding the company, asset or service in this article.
Warning: Citing the news content of Kriptokoin.com and quoting by giving a link is subject to the permission of Kriptokoin.com. No content on the site can be copied, reproduced or published on any platform without permission. Legal action will be taken against those who use the code, design, text, graphics and all other content of Kriptokoin.com in violation of intellectual property law and relevant legislation.