The Power of Whales in Ethereum and Three Altcoins! How Will Large Wallets Affect the Market? - Coin Bulletin

On-chain analysis platform Santiment examined the supply distribution on Ethereum and three major altcoins, Shiba Inu (SHIB), Chainlink (LINK), and Toncoin (TON).

The fact that the top 10 wallets hold a significant portion of the total supply raises the question of whether it can create a risk of manipulation and sudden price fluctuations in the market.

61.3% of Shiba Inu's total supply is controlled by only 10 large wallets. This poses a significant risk for SHIB investors. If these large wallets engage in massive sell-offs, it could result in sharp price declines for Shiba Inu. Small investors may face gains or losses depending on the decisions of these large holders.

On the Ethereum side, 46.1% of the total supply is held by the top 10 wallets. While this ratio is seen as more balanced compared to Shiba Inu, it is an interesting data for investors questioning Ethereum's decentralization claim. However, protecting or increasing the Ethereum in the hands of large holders is considered a positive signal for the market.

Projects such as Chainlink and Toncoin, which have a more healthy supply distribution, also have lower levels of control by large wallets. 33.1% of LINK's total supply and 32.8% of TON's are held by the top 10 wallets. This more equal distribution is seen as more reassuring for long-term price stability. A decentralized supply structure ensures that investors operate in the market with less manipulation risk.

According to Santiment's analysis, when a large part of a crypto asset's supply is controlled by a small number of wallets, this asset becomes much more volatile. When large holders decide to sell their holdings, prices can suddenly plummet. However, if these wallets continue to hold or accumulate more, it can create a reassuring environment for investors.