Supply concentration and decentralization risk
Whale concentration measures the percentage of circulating supply held by the top 100 addresses. High concentration indicates that a small number of addresses control much of the supply, creating leverage points where large holders can influence price through coordinated action. Low concentration suggests supply is more widely distributed among smaller holders. This metric is a practical measure of decentralization risk that complements hashrate or validator counts.
Comparing concentration across networks
Bitcoin's top 100 addresses hold roughly 15% of circulating supply, reflecting its long distribution history. Newer networks often see much higher concentration, sometimes 50% or more, because early investors accumulated large stakes cheaply. High whale concentration in a young network can indicate centralization risk, though it may also reflect legitimate early-stage capital concentration. Networks with falling concentration over time signal successful distribution, while rising concentration suggests accumulation by few actors.