Ethereum NFTs have actually gotten one of the most influence in the crypto area. These NFTs have actually taped sales of as much as 69.3% for a single piece of art work. Investors are moving towards owning NFTs as a form of long-term investment in addition to their cryptocurrency holdings. Although other blockchains are turning up where NFTs can be minted, most of it still takes place on Ethereum.
This is why investors have flocked towards non-fungible tokens minted on the blockchain. Its growing appeal has actually caused some striking resemblances with the pattern of holding seen in cryptocurrencies. For example, the same way whales are a thing in cryptocurrencies, there are also NFT whales, and new data coming out of the market shows that whales are dominating NFTs the same way they dominate cryptocurrencies.
Whales Take The Lead On NFTs
Moonstream released a report on Github examining the motion of non-fungible tokens over the previous 6 months. This time period has been very significant in the growth of the NFT space and the report had some interesting findings.
It discovered that over 80% of all non-fungible tokens are held by just 17% of wallets. Leaving less than 20% of NFTs for the remainder of the market. NFT platforms, exchanges, and most importantly, whales, have been grabbing up non-fungible tokens at an increased rate over the past six months, putting them at an advantage over the rest of the market. This is matching the cryptocurrency market which reveals comparable figures for volume held by whales and smaller sized financiers.
Moonstream analyzed over 7 million NFTs transactions for the past six months on the Ethereum blockchain. This analysis caused the conclusion that the staying 83.29% of the NFT market holds just a handful of it.
Creating Room For Nuance
The data presented in the report included NFT platforms where investors buy and sell their NFTs. It is essential to keep in mind that because these platforms likewise use storage services, NFTs being saved on the platforms are factored into this.
Small-time NFT investors could very well decide to leave their acquisitions on these platforms to enable them to sell easily, much like cryptocurrency investors leaving their assets on exchanges in order to move very quickly with the market.
In the report, Moonstream discusses that more subtlety is required in the analysis of the information provided, “as many of those owners are marketplaces and clearinghouses lie OpenSea, Nifty Gateway, and other platforms of the same ilk.”
Nevertheless, just like in any market, there are always stark inequalities. A little portion generally manages the biggest market share and offered the barriers to entry in the non-fungible token market, small-time financiers will manage an unimportant part of the marketplace.
