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Since April, 17% Of Addresses Have Purchased 80 % Of The Total Of All Ethereum NFTs

According to Moonstream data, the top 16.71 percent of all NFT hodlers on Ethereum held 80.98 percent of all NFTs between April 1 and September 25.

 

Moonstream, an open source blockchain analytics startup, presented research in which it discovered that about 17% of addresses control more than 80% of all non-fungible tokens (NFTs) on Ethereum.

The research was released on October 21, and the analysis was performed on over seven million NFT transactions on the Ethereum blockchain between April 1 and September 25, 2021.

According to the analysis, whales, NFT platforms, and exchanges possess 80.98 percent of NFTs on Ethereum, accounting for the top 16.71 percent of all addresses.

During that time period, the remaining 83.29 percent of NFT owners were only able to purchase “a handful of tokens.”

“This latter statistic does require a little more nuance in its interpretation, however, as many of those owners are marketplaces and clearinghouses like OpenSea, Nifty Gateway, and other platforms of the same ilk,” Moonstream said.

The data appear to closely resemble the Pareto Principle, or the 80/20 rule, which is a frequent element in several industries and sectors. The approach is based on the assumption that about 80% of the effects result from 20% of the causes.

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Moonstream’s data collection concentrates on ERC 721 tokens and excludes data from layer two networks such as Polygon, as well as data from centralised Application Programming Interfaces (APIs).

“Our scan of these 1,145,767 blocks revealed transfer activity for 7,020,950 tokens from 9,292 NFT contracts distributed among 727,102 addresses.” “These mints and transfers are at the heart of the dataset,” according to the paper.

While Moonstream emphasised the “great inequality” of NFT ownership on Ethereum, the company also claimed that the NFT market is still open enough for small investors to participate, and that the majority of NFT holders are small-time traders who were able to purchase their assets with relative ease:

“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 likely make their purchases manually. There are few barriers to entry for those who wish to participate in this market.”