A supply concentration cluster is a group of cryptocurrency addresses holding a large portion of a digital asset’s total supply. This term identifies specific on-chain entities or groups of addresses that collectively possess a significant percentage of a particular digital asset’s circulating supply. Such clusters, often representing whales, institutions, or mining pools, exert considerable influence over market dynamics due to their capacity for large-scale buying or selling. Their movements are closely monitored for potential market impact.
Context
The analysis of supply concentration clusters is a vital component of on-chain analytics, providing insights into the distribution of wealth and potential market manipulation risks. News reports often highlight changes in these clusters to explain price volatility or predict future market trends. Understanding these concentrations helps assess the decentralization and resilience of a digital asset’s economic structure.
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