Recent data from Santiment reveals significant concentration of Ethereum (ETH) in the hands of a few wallets, sparking renewed discussions about centralization risks.
Ethereum Concentration Among Holders
According to the report, 10 wallets control over half of the total ETH supply. This revelation raises concerns regarding influence on governance, liquidity, and price stability.
Similar Trends in SHIB and UNI
The concentration issue is not limited to Ethereum. Data highlights similar patterns in ecosystem tokens like Shiba Inu (SHIB) and Uniswap (UNI), where significant portions are concentrated among a small number of addresses.
Debate on Centralization in Crypto
These findings fuel an ongoing debate within the crypto space about the balance between decentralization and practicality. While large wallets may belong to exchanges or institutional investors, the risk of market manipulation remains.
The results emphasize the importance of understanding ownership dynamics and their implications for governance practices in the cryptocurrency space.
