According to research, since April, more than 80% of NFTs on Ethereum have been controlled by just a few wallet addresses.
According to a new analysis, a large fraction of all Ethereum-based non-fungible tokens (NFTs) is held by just a few addresses on the network.
Moonstream, an open-source blockchain analytics startup, produced research on October 21 that focused entirely on NFTs using the ERC 721 token standard. Between April 1 and September 25, 2021, it examined over 7 million NFT transactions on the Ethereum blockchain.
On Ethereum, there is inequity in the distribution of NFTs
According to the report, the 16.71 percent reflects many NFT platforms and exchanges that deal with thousands of these digital tokens at the moment.
With such a high number of addresses managing NFTs on the Ethereum network controlling more than 80% of the total accessible supply, the remaining 83.29 percent of token holders will only be able to share a pitiful 19.02 percent of tokens during the study period.
Low Barriers to Entry
Although the research highlighted the inequity in the allocation of NFTs, it also said that the market is still available to all investors, both small and large.
The NFT market has flourished in recent months, attracting millions of interested parties, including investors, collectors, developers, and exchanges.
As institutional investors join the NFT craze, excitement is building, and sales are reaching new highs. The NFT market generated $10.7 billion in sales between July and September alone.