About 7,500 Ethereum Addresses Contain Over 80% of Total ETH Supply: Report

  • Majority, or 80%, of ETH held in just 7,572 Ether wallets.
  • Compound and MakerDAO's contracts have also locked up large amounts of Ether.

There are currently 7,572 Ether (ETH) addresses that reportedly hold more than 80% of the total circulating supply of the world’s second largest cryptocurrency.

This, according to a report published by cryptoasset research firm Delphi Digital, which revealed that over 80% of Ether’s total circulating supply is held by wallets that have a balance of at least 1,000 ETH. There are currently 7,572 ETH addresses with a minimum 1,000 ETH balance.

As noted in Delphi’s report, there are currently around 6,490 ETH addresses that have a balance of between 1,000 and 10,000 ETH. Out of these addresses, there are reportedly 923 wallets that have between 10,000 and 100,000 ETH. There are also 155 Ethereum wallets holding between 100,000 to 1,000,000 ETH - while there are only four wallets that have a balance of at least 1,000,000 ETH and some of these hold up to 10,000,000 ETH.

For reference, 1 ether is currently trading at $136 and the cryptocurrency's circulating supply is of 105,000,000 ETH. This means wallets holdings 10,000,000 ether have the equivalent of $1.3 billion.

Ether's Price Has Fallen By 20% After Each Hard Fork

Significantly, the price of Ether has dropped by nearly 20%, on average, each of the five times the Ethereum blockchain went through a hard fork (backwards incompatible) upgrade over the course of a month, Delphi’s report noted. However, it mentioned the hard fork just before the recent Constantinople and St. Petersburg upgrades saw ether's price decrease less than 1%. The report’s authors attributed the relatively small  depreciation to block rewards being reduced from 5 to 3 ETH in the previous Ethereum hard fork.

According to Delphi’s research, there are 2.3 million ETH, an amount currently valued at about $313,674,000 and also around 2% of Ether’s circulating supply, that is now being held in various decentralized finance (DeFi) applications. Moreover, the majority of ETH that is being staked in DeFi apps, about 98%, is reportedly locked in MakerDAO’s stablecoin DAI.

Concerns Over Single Point Of Failure, Centralization

As confirmed in Delphi’s report, the app with the second-most ETH staked by users is on Compound’s (a decentralized lending platform and protocol) network - which reportedly had about 28,500 ETH (as of March 3).

Finally, Delphi’s report noted there have recently been concerns regarding various technical issues related to Ethereum and its ongoing development. It claims Infura, a newly launched infrastructure-as-a-service (IaaS) division of ConsenSys, has let developers launch decentralized applications (dApps) without requiring them to maintain a full-node. This, the report’s authors argue, could lead to centralization of the Ethereum-based services.

Moreover, Delphi’s report claims that by using infrastructure managed by ConsenSys and deployed on Amazon Web Services (AWS), the services may be susceptible to a single point of failure. This being something that decentralized networks aim to avoid.