New report revealed that a significant portion of all non-fungible tokens (NFTs) created on the ETH blockchain are owned by a small number of addresses on the network.
The report, published by open-source blockchain analyst firm Moonstream, focused exclusively on NFTs with the ERC 721 token standard. It was executed on more than 7 million NFT transactions on the ETH blockchain since April 1.
Imbalance in NFT distribution on Ethereum, more than 80% of tokens control less than 17% of addresses
A Moonstream report states that approximately 16.71% of all NFT transactions on the ETH blockchain own an incredible 80.98% of NFTs.
“There is a big imbalance in the ETH NFT market in the sense that 16.71% of NFT owners control 80.98% of NFTs.”
With such a high percentage of addresses in the ETH network, which control more than 80% of the total available NFT offer, this leaves only 19.02% of tokens at 83.29% of the remaining holders.
Although the report pointed to an imbalance in the distribution of NFTs, it also noted that the market is still open to all, small and large investors. That 16.71% is represented by several NFT platforms and exchanges, which deal with thousands of these digital tokens at once.
“These data show us that the Ethereum NFT market is open in the sense that the vast majority of its participants are small buyers who are likely to speculate.”
The NFT market has exploded in recent months, and millions of investors, including investors, collectors, developers and stock exchanges, have quickly taken advantage of the trend. Excitement grew as institutional investors joined the NFT’s mania and sales climbed to record highs. Between July and September alone, the NFT market had sales of an incredible $ 10.7 billion.