ETH supply concentration refers to the degree to which a large portion of Ethereum’s native asset, Ether, is held by a small number of addresses. This metric assesses the distribution of Ether across the network, indicating whether holdings are widely dispersed or heavily centralized among a few entities, often termed “whales.” High concentration can imply potential market manipulation risks or a lack of decentralization in asset control. Analysts monitor this data to understand the ownership structure and potential influence of large holders on market dynamics and governance decisions.
Context
ETH supply concentration is a recurring topic in discussions about Ethereum’s decentralization and market stability. Debates concern the impact of large holders on price volatility and their voting power in decentralized autonomous organizations. The shift to Proof-of-Stake and the rise of liquid staking derivatives introduce new dimensions to this analysis, as staked ETH might also contribute to perceived concentration.
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