What is the concentration of the crypto market?

concentration of crypto market

The crypto market is subject to a significant volatility, much more than the stock market. 

See how Bitcoin, the market leader, has evolved over the last 365 days.

Bitcoin evolution over the last 365 days (April 7, 2022). Source: CoinMarketCap
Bitcoin evolution over the last 365 days (April 7, 2022). Source: CoinMarketCap

Bitcoin climbed close to $65,000, retreating at time of writing (April 7, 2022) to $43,519.93. 

What is the concentration at the top of the crypto market?

The current value of the full crypto market analysed by CoinMarketCap is just above $2 trillion, with the vast majority of the market concentrated among a handful of currencies (70.7% for the first 5 crypto assets, out of a total of 18,750 cryptos!). 

  • Bitcoin, $825,368,984,056 = 41.2% of the whole market cap.
  • Ethereum, $387,866,776,598 = 19.4% of the whole market cap.
  • Tether, $82,459,952,430 = 4.1% of the whole market cap.
  • BNB, $70,997,074,383 = 3.5% of the whole market cap.
  • USD Coin, $51,136,705,513 = 2.5% of the whole market cap

See the evolution of the full crypto market cap since 2014. You'll notice the growth acceleration in July 2020.

Evolution of the full crypto market cap since 2014
Source: CoinMarketCap

What is the concentration of BTC supply?

There are currently 100+ million Bitcoin owners.

The top 100 BTC addresses represent 14.1% of the full market cap but one address can hold BTC for millions of owners, when operated by an exchange (Binance, Coinbase, etc.). There are only 4 BTC addresses holding more than 100,000 BTC. 

The #1 address (34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo) holds 252,597.23 bitcoins, which represents 1.2% of total Bitcoin supply, for a value of $11,054,026,102 (April 7, 2022). You can follow the trades related to this address on https://bitinfocharts.com/bitcoin/address/34xp4vRoCGJym3xR7yCVPFHoCNxv4Twseo. Interestingly you'll notice a lot of small incoming trades (around $5 each). This is actually Binance Cold Wallet. 3 of the 4 main BTC addresses belong to this exchange (which manages 3.3% of the total BTC supply). Binance processes 5x more transactions (in terms of $ volume) than Coinbase on a daily basis. 

The third whale address of BTC Top 4 doesn't belong to Binance (1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ). It holds 122,228.54 BTC, which represents 0.6431% of total BTC supply, for a value of 5,331,736,325.46 USD. 

Recently it has received a mix of very small incoming trades (incl. one valued $1.83) and huge ones (incl. one valued 137,483,443.63 USD). We don't know who owns this BTC address but it's followed by a range of bloggers to inform their trading strategy.

Here's the summary of the activity on this address. It's been accumulating BTC since February 2019. 

1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ activity
1P5ZEDWTKTFGxQjZphgWPQUpe554WKDfHQ activity

Who dominates crypto on socials?

According to Lunarcrush, BTC dominates the social media landscape, with 13.73M mentions out of 52.2M over the last 30 days (= 26.3%). 

PancakeSwap, a decentralized finance (DeFi) application, ranked #50 by CoinMarketCap ($2,508,026,975 = 0.124% of the global crypto market cap), represents 4.5% of the social media conversation.

Social Conversation around Cryptos. Source: Lunarcrush.
Social Conversation around Cryptos. Source: Lunarcrush.

What is the concentration of the NFT market?

At time of writing, the global NFT market cap is $10,256,999,810.98, mainly operated via ETH. 

The 3 main NFT collections are concentrating 72% of the whole NFT market cap.

  • Cryptopunk, 605,230.9 ETH (1,968,017,212.91 USD = 19% of the whole NFT market)
  • Bored Ape Yacht Club, 1,191,815.23 ETH (3,875,401,747.09 USD = 37.7% of the whole NFT market)
  • Mutant Ape Yacht Club, 483,023.35 ETH (1,570,637,366.73 USD = 15.3% of the whole NFT market)

The peak of NFT market activity dates back to September 2021. As you can see on the chart below (source: nonfungible.com), the Sales activity has been decelerating ever since. The NFT mania shows signs of cooling off, as reported by Bloomberg.

NFT market, Sales activity 2018-2022 (peak in Sept 2021)
NFT market, Sales activity 2018-2022 (peak in Sept 2021)

"NFT" peaked on Google Trends in late January 2022.





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