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 are looking 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 about 80% of the results come from 20% of the causes. In response to the report, Reddit user “xddemonesque” said, “It’s fascinating to see the Pareto principle being held more or less avant-garde and traditionally ‘irrational’ in a market.”
Report 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. This series of mining activities and transfers forms the core of the dataset,” the report says.
Moonstream highlighted the “major inequality” of NFT ownership on Ethereum, while 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 states: “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 wishing to join this market. ”