Ethereum NFTs have gained the greatest clout in the crypto space. These NFTs have seen sales of up to 69.3% for a single work of art. Investors are moving to owning NFTs as a form of long-term investment in addition to their cryptocurrency holdings. Although other blockchains are popping up where NFTs can be minted, the majority of it still happens on Ethereum.
Because of this, investors have focused on non-fungible tokens that are minted on the blockchain. Its growing popularity has led to some striking similarities with the holding pattern of cryptocurrencies. Just as whales appear in cryptocurrencies, for example, there are NFT whales, and new data coming from the market shows that whales dominate NFTs in the same way that they dominate cryptocurrencies.
Related reading | Five Hidden Gems in NFTs – Well, no longer hidden
Whales take the lead at NFTs
Moonstream has published a report on Github that analyzes the movement of non-fungible tokens over the past six months. This period was very important to the growth of the NFT space, and the report contained some interesting findings.
It turned out that over 80% of all non-fungible tokens are held by just 17% of the wallets. Less than 20% of the NFTs are left for the rest of the market. NFT platforms, exchanges and especially whales have increasingly stolen non-fungible tokens in the past six months, giving them an edge over the rest of the market. This reflects the cryptocurrency market, which has similar numbers for the volume held by whales and smaller investors.
Moonstream has analyzed over 7 million NFTs transactions on the Ethereum blockchain in the past six months. That analysis led to the conclusion that the remaining 83.29% of the NFT market only holds a handful of them.
Create space for nuances
The data presented in the report included NFT platforms on which investors buy and sell their NFTs. It is important to note that since these platforms also offer storage services, NFTs that are stored on the platforms are considered here.
Small NFT investors might very well choose to keep their acquisitions on these platforms for easy sale, much like how cryptocurrency investors put their assets on exchanges to act very quickly with the market.
Related reading | CryptoDragons: a one-of-a-kind NFT project with entertainment and merit elements
In the report, Moonstream explains that there is a need for more nuance in interpreting the data presented, “since many of these owners are marketplaces and clearinghouses, OpenSea, Nifty Gateway and other platforms are of the same type.”
Yet, as in any market, there are always blatant inequalities. A small percentage usually controls the largest share of the market and given the barriers to entry into the non-fungible token market, retail investors will control an insignificant portion of the market.
Featured image from Forbes, chart from TradingView.com