Ethereum (ETH) whales own a huge share of all non-fungible tokens (NFT’s) on the blockchain network. According to a recent study by blockchain analytics firm Moonstream, only 17% of all wallet addresses own as much as 80% of all NFTs on Ethereum.
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The research looked at as many as 7 million NFT transactions from more than 727,000 addresses that took place on the Ethereum network between April 1 and September 25, 2001. The survey concludes that 17.71% of the largest addresses own 80.98% of NFTs.
The research points out that the largest addresses mainly consist of cryptocurrency-exchanges and NFT marketplaces like OpenSea and Nifty Gateway. It is therefore not very surprising that they own a large share. The study therefore notes that further analysis is needed in a future report.
Still, it means that the remaining 83.29% of NFT holders bought only a “handful” of tokens in comparison during the same period, namely “only” 19.02%. However, that still comes very close to the well-known 80-20 rule, or the Pareto principle. The same distribution can also be found in most regular markets.
In addition, Moonstream did not review all NFT data, it only examined transactions with the ERC-271 standard and also no layer-2 data like that of Polygon (MATIC). The study also notes the following:
“It is possible that there are a small number of people or organizations that create a separate wallet for every NFT they purchase, but do so at a scale that our analysis would be technologically and operationally complex enough and expensive enough that it would be virtually impossible .”
Still, Moonstream calls the NFT market very accessible to small investors:
“What this data shows us is that the Ethereum NFT market is open in the sense that the vast majority of participants are small buyers who are likely to make their purchases manually. There are few barriers to entry for those who want to participate in this market.”
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