Moonstream’s document shows that about 16.71% of all addresses conducting NFT transactions on the Ethereum blockchain hold a whopping 80.98% of the NFTs. More than 80% of NFTs on Ethereum since April are owned by just a few wallet addresses, a report stated.
A new report has revealed that a good portion of all Ethereum-based non-fungible tokens (NFTs) is in the possession of a small number of addresses on the network.
The report, which was published on October 21 by the open-source blockchain analytics firm, Moonstream, focused solely on NFTs with the ERC 721 token standard. It was performed on more than 7 million NFT transactions on the Ethereum blockchain between April 1 and September 25, 2021.
Inequality in NFT Distribution on Ethereum
Moonstream’s document shows that about 16.71% of all addresses conducting NFT transactions on the Ethereum blockchain hold a whopping 80.98% of the NFTs.
It additionally noted that the 16.71% represents the several NFT platforms and exchanges that deal with thousands of those digital tokens at a time.
“There’s also a great inequality in the Ethereum NFT market in the sense that the top 16.71% of NFT owners management 80.98% of the NFTs,” the report said.
Seeing such a high percentage among addresses dealing with NFTs on the Ethereum network accountable for greater than 80% of the total available supply leaves about 83.29% of the remaining holders to share a meager 19.02% of tokens within the timeframe of the analysis.
Low Entry Barriers
Though the paper identified the inequality in the distribution of the NFTs, it is additionally noted that the market continues to be open for all, both small-scale and large-scale investors.
It said, “What this data shows us is that the Ethereum NFT market is open in the sense the vast majority of its participants are small-time purchasers who probably make their purchases manually. There are few barriers to entry for individuals who want to participate on this market.”
The NFT market has exploded in recent months and millions of parties, together with investors, collectors, developers, and exchanges are shortly jumping on the trend.
Pleasure is rising as institutional investors be a part of the NFT mania and sales are climbing to report highs. Between July and September alone, the NFT market raked in a whopping $10.7 billion in sales.
Source: Cryptopotato
