The concentration of crypto holdings among large wallets plays an important role in market stability and investor confidence. Recent data highlights a significant disparity in supply distribution across major altcoins, with Shiba Inu exhibiting notably high concentration levels.

While Ethereum follows closely behind, Chainlink and Toncoin present a more balanced distribution, which suggests a healthier market trend.

Crypto Whale Holdings

Santiment’s latest analysis reveals the concentration of cryptocurrency holdings among the top 10 largest wallets for four major altcoins, highlighting the potential risks and stability factors in the market.

Popular meme coin Shiba Inu (SHIB) has the highest concentration, with 61.3% of its total supply held by its top 10 wallets. This suggests a high level of centralization, where a few large holders, or “whales,” exert significant control over market movements.

If these entities decide to sell, it could trigger steep price declines, which, in turn, would increase risk for smaller investors. On the other hand, Ethereum (ETH) shows a lower concentration at 46.1%, followed by Chainlink (LINK) at 33.1% and Toncoin (TON) at 32.8%.

A lower percentage of supply in the hands of top holders generally indicates a more decentralized distribution, which can enhance market stability and reduce the likelihood of price manipulation. When ownership is more evenly spread, no single entity has the power to dictate market trends, thereby boosting greater investor confidence.

However, large holders maintaining or increasing their positions can signal long-term confidence in a project, which may positively impact price stability. While high concentration can pose risks, it can also serve as an indicator of whale confidence if these holders choose to retain their assets.

“When too much supply is in the hands of a few, smaller holders may feel at a disadvantage, but when supply is more balanced, there’s usually more confidence in the asset’s price stability.”

Crypto Market Correction

On the price front, Ethereum has shed more than 4% over the past 24 hours and is currently trading below $2,800. Following a similar market correction, Chainlink was trading near $18.80. Toncoin lost a little over 3% over the past day but managed to keep steady above $3.70.

Meanwhile, Shiba Inu was the largest loser among the lost as the meme coin declined by over 6% during the same period, hovering near $0.0000149.

The post Shiba Inu’s Supply Raises Concerns, Chainlink and Toncoin Display Healthier Metrics appeared first on CryptoPotato.

The amount of Ether (ETH) withdrawn from crypto derivatives exchanges has surged to its highest level since August 2023, a development analysts interpret as a bullish sign for ETH’s price.

On February 6, Ether’s net outflows from derivatives exchanges reached 300,000 ETH, valued at approximately $817.2 million, with ETH trading at $2,724 at the time.

This movement suggests reduced selling pressure as traders close leveraged positions and move assets to cold storage, according to CryptoQuant analyst Amr Taha.

Ether Withdrawals from Derivatives Platforms Reduce Selling Pressure

Taha noted that when Ether is withdrawn from derivatives platforms, it decreases the immediate supply available for selling, making it more difficult for the price to drop.

“If demand remains stable or increases, price tends to rise due to lower available supply,” he explained.

ETH has faced a 19.42% decline over the past 30 days, struggling to reclaim the $3,000 psychological level since February 3.

However, market observers see the recent outflows as a potential catalyst for recovery.

Crypto analyst Kyle Doops echoed this sentiment, stating on X (formerly Twitter) that “big moves like this typically mean less selling pressure and major position closures—often a bullish signal.”

The shift comes amid increasing bullish sentiment for Ethereum, fueled by several factors. Eric Trump, son of U.S. President Donald Trump, recently posted on X, calling it “a great time to add ETH.”

Additionally, Trump’s World Liberty Financial crypto initiative has been steadily accumulating Ether, further signaling confidence in the asset.

Another key development is the potential approval of a staked Ether ETF.

Consensys founder Joe Lubin recently stated that ETF issuers are optimistic about regulatory approval for staking-based funds, suggesting that such products could be greenlit soon.

Buterin Unveils Leadership Overhaul at Ethereum Foundation

Last month, Ethereum co-founder Vitalik Buterin announced significant leadership changes at the Ethereum Foundation, aiming to prioritize technical expertise and strengthen collaboration with developers in the ecosystem.

The announcement, made on January 18 via an X post, outlined a vision to support decentralized application developers while upholding Ethereum’s core principles of decentralization, censorship resistance, and privacy.

Buterin emphasized that the Ethereum Foundation will avoid political lobbying or ideological shifts, maintaining its decentralized ethos.

The leadership shift follows a challenging year in 2024, during which the Foundation faced criticism over its spending practices, roadmap execution, and personnel policies.

A key turning point came in May 2024 when the Ethereum Foundation introduced a conflict-of-interest policy after several researchers, including Justin Drake and Dankrad Feist, accepted paid advisory roles at EigenLayer Foundation.

According to L2Beat, Ethereum now hosts 55 layer-2 rollups.

However, this proliferation raised concerns among stakeholders, who argued that layer-2 networks were cannibalizing revenue on Ethereum’s base layer.

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