Only 17% of all addresses own 80% of Ethereum NFTs

October 22, 2021

According to a recent report, 80% of all NFTs on Ethereum’s network are controlled by only a fraction of addresses; pointing out that only a small portion of all address owners have taken hold of the majority of Ethereum-based non-fungible tokens.

The report came after a research and analysis which considered more than 7 million transactions regarding NFTs on Ethereum’s blockchain that occurred from the beginning of April until the end of September. According to the report, conducted and compiled by the Moonstream team, whales, exchanges, and NFT platforms – which represent less than 17% of all addresses – account to hold more than 80% of Ethreum’s NFTs. The remaining 83% of all addresses owning NFTs were only able to get a small portion of NFTs available between April and September.

Inequality of ownership of Ethereum NFTs

While it seems that whales and platforms are controlling the market, it is important to recognise whether the market is being driven by the whale-generated hype or whether the explosive growth is an honest representation of the market’s future. According to the report:

“It is difficult to understand how much of the hype surrounding NFTs is manufactured and how much of it reflects the situation on the market… There is also a great inequality in the Ethereum, NFT market… [The] 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.

Concluding the report, which also considered what utility and function NFTs pose in the industry, Moonstream noted that the analysis paints the NFT market and ownership within the space as an open market that takes influence from conventional wealth distribution. With the gap of mass ownership evident between the whales and institutions and other retailers and NFT investors, there might be a wealth disparity in the NFT market (despite the decentralised nature) that proves difficult to overcome.