As can be seen in the graph below the LINK token has been decreasing in the number of directions it is held. At the end of 2017, about 35% of the addresses were holding LINK, but this figure has been decreasing as the concentration level has increased. Although these levels remained relatively the same during 2018 until the end of 2019 when an increase in LINK accumulation can be seen, after showing an increase in the addresses that held the token. At the time of publication 90% of LINK supply is held in 10% of whales addresses.
The DeFi sector has had difficult months due to increased market volatility. However, it has been recovering during May and June and has managed to reach again the $1 billion locked in its different protocols. The supply of tokens for these protocols, on the other hand, shows a high level of centralization.
Kyber network’s token remained in between 20% and 30% of addresses in its beginnings, but increased its levels of concentration at the beginning of 2018. After a slight increase in that period, as can be seen in the graph below, the percentage of addresses that Kyber has maintained has been consistently low since May 2018. The token is held by between 5% and 8% of addresses, indicating that it has remained concentrated in a few directions for most of its history. The rest of the tokens show similar trends. There is a level of concentration that varies during 2017 and 2018, but in April 2019 it remains constant with a tendency to increase. However, the MakerDAO token (MKR) has the highest concentration levels. Even since its launch, the token was slightly above 5% of the addresses holding it and in January 2018 it has only increased its percentage of addresses holding it in March 2020. This is probably a result of “black Thursday”, the poor performance of several DeFi protocols and the increase in the MKR token issuance.
Author : Reynaldo