Ethereum Supply Concentration

Definition ∞ Ethereum Supply Concentration refers to the distribution of a significant portion of the total Ether supply among a relatively small number of addresses or entities. This metric indicates the extent to which wealth or control over the network’s native asset is centralized. High concentration can suggest potential market manipulation or reduced decentralization. It provides insight into asset distribution.
Context ∞ Ethereum supply concentration is a regular subject of analysis in crypto news, especially concerning its implications for market stability and governance decentralization. Large holders, often termed “whales,” can significantly influence price movements, making their activity a key indicator for market observers. Changes in this concentration can signal shifts in market power.