- The concentration of ownership in meme cryptocurrencies by whales defies decentralization, with BABYDOGE and MEME leading in concentration.
- Solana presents a more even distribution of meme cryptocurrencies, evidencing less control by whales in BONK and WIF.
Recent analysis of asset distribution in the meme cryptocurrency sector reveals a trend towards significant concentration of ownership in the hands of so-called “whales”. This phenomenon challenges the initial perception of decentralization and democratization that characterized this market niche.
Tis' the season of memecoins. 🐶🐸😺
But only a few people are having fun. The rest of us, aren't.
The reason?
Most memecoins are held by a few hodlers.
For instance:
– 99.7% of $BabyDodge is held by top-10 holders
– 96% of $MEME is held by top-10 holders
– 75% of $SHIB is… pic.twitter.com/OoJ5SzOTDk— PYOR | Power Your Own Research (@pyorxyz) March 5, 2024
Power in the Hands of the Few
Detailed information provided by Power Your Own Research highlights that major meme cryptocurrencies such as Dogecoin (DOGE), Shiba Inu (SHIB), Floki (FLOKI), Baby Doge Coin (BABYDOGE), and Memecoin (MEME) are mostly controlled by a small group of investors .
In particular, for BABYDOGE, more than 99% of the circulating supply is held by the top ten wallets, followed by MEME with 96%. SHIB and FLOKI also show a high concentration, with 75.03% and 69% respectively.
According to previous ETHNews reports, there has been growing interest from established entities in the meme cryptocurrency sector. The Blockchain Foundation began integrating these coins into its portfolio in December 2023, marking a significant moment in the evolution of these cryptocurrencies. The Avalanche Foundation has also recognized the potential of these coins by including them in its investments, strengthening its position in the Web3 ecosystem.
A Contrast with Solana
Unlike the trend observed in other blockchains, meme cryptocurrencies on the Solana (SOL) network show a more equitable distribution. Accordingto the same PYOR report, the top ten wallets own only 14.3% of Bonk (BONK) and 22.6% of Dogwifhat (WIF), indicating a lower concentration of ownership and thus a greater democratization of ownership.
Each new report evidences the complexity and dynamism of the cryptocurrency market, an ecosystem where elements of financial and cultural innovation converge. For market participants, the challenge is to stay informed and adapt to a constantly changing environment, without underestimating the potential impact of meme cryptocurrencies on the digital financial sector.
