Analyzing wealth concentration on Bitcoin, Ethereum, and XRP

Analysis shows that XRP has much higher wealth concentration than both Bitcoin and Ethereum. Nevertheless, such concentration poses risks for all three coins. Here’s why.

Wealth concentration by the numbers

In August, blockchain analytics firm Coin Metrics released data around different coins and their wealth concentrations. Here are snippets for the top three coins by market capitalization:

The numbers show that Bitcoin, as the largest network, has the largest total number of addresses with meaningful balances—indicating a leading distribution of funds and greater usage when compared to other coins.

Meanwhile, Ethereum addresses tend to have the smallest balances of the top three, indicating relatively strong wealth dispersion. Finally, tokens on XRP appear highly concentrated, potentially posing greater price risk for holders. Read More...