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Data reveals that DOGE is highly concentrated, with over 62% held in the top 50 Addresses.
Crypto Assets Concentration Analysis: DOGE Holding Situation Draws Follow
Recent research shows that the views of a well-known entrepreneur regarding the excessive concentration of DOGE have been validated. A professional Crypto Assets rating agency conducted a comparative analysis of major coins and found that the concentration level of DOGE is indeed the highest.
Data shows that over 28% of circulating DOGE is concentrated in a single address, approximately 36.8 billion coins, worth about 2.1 billion dollars at the current market price. More concerning is that nearly 50% of the DOGE supply is held by the top 20 holders.
The research also conducted statistics on the concentration of other major crypto assets. The following are the percentages of circulating supply held by the top 50 addresses of each token:
The fact that whale accounts control more than half of the DOGE supply has raised concerns in the market. This not only increases security risks, making the network more susceptible to a 51% attack, but it could also lead to severe price volatility for the tokens. Although large holders currently have no motivation to sell, their ability to do so is enough to deter some potential investors.
This highly centralized holding structure may affect the long-term development of DOGE. It could both hinder new investors from entering the market and attract the attention of regulatory bodies. For the healthy development of the Crypto Assets ecosystem, how to avoid excessive concentration while maintaining the essence of decentralization remains a topic worthy of in-depth discussion.