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An analysis of the concentration of ownership has revealed the risks of selling pressure for some popular cryptocurrencies.<\/p>\n
What Happened: <\/strong>In a report published on FXStreet<\/a>, analysts at IntoTheBlock calculated the ownership distribution of the circulating supply of Bitcoin <\/strong>(CRYPTO: BTC<\/a>), Ethereum <\/strong>(CRYPTO: ETH<\/a>)\u00a0and Dogecoin <\/strong>(CRYPTO: DOGE<\/a>).<\/p>\n \u201cTo measure decentralization of ownership we use an indicator named Holdings Distribution Matrix which shows a breakdown of different groups of addresses according to the balance that they hold,\u201d explained the analysts.<\/p>\n Bitcoin:<\/strong> In the case of Bitcoin, more than half of the circulating supply is held by users with less than 0.0001 BTC each.<\/p>\n \u201cThis reinforces the idea that most holders of BTC are not rich investors,\u201d <\/strong>stated the analysts.<\/p>\n Over 2,000 individuals hold $200 billion BTC or 27% of the supply and just four single addresses hold more than 100,000\u00a0BTC each. IntoTheBlock believes these entities could be major crypto exchanges, and one of them could be MicroStrategy Incorporated<\/strong> (NASDAQ:MSTR<\/a>) \u2013 the public company with the largest Bitcoin holdings.<\/p>\n Ethereum: <\/strong>Ethereum\u2019s distribution matrix also points to a relatively unconcentrated distribution of supply. Over 70% of the total supply is held by investors with less than 0.01 ETH or $30 each.<\/p>\n \u201cThis is peculiar considering that ETH usage is not particularly cheap,\u201d <\/strong>noted the analysts.<\/p>\n The matrix finds that seven addresses hold $72 billion in ETH, which represents around 21.69% of the supply. Three of these addresses are smart contracts used for DeFi and ETH2 staking, while another two are known to be centralized exchange addresses.<\/p>\n Dogecoin: \u201cThe most notorious insight about the DOGE distribution is how a single address holds more than 23% of the supply,\u201d<\/strong> stated the analysts.<\/p>\n At current prices, this is worth more than $4.2 billion. Market participants have speculated that this address could belong to Tesla Inc <\/strong>(NASDAQ:TSLA<\/a>) CEO Elon Musk<\/strong> or even be Robinhood Markets Inc\u2019s <\/strong>(NASDAQ:HOOD<\/a>) cold storage wallet.<\/p>\n