Moonstream reports 81% of all Ethereum NFTs since April being held by a measly 17% addresses

An open source blockchain analytics firm Moonstream, has published results of a research it made on NFT hodlers on Ethereum.

According to the results, Moonstream found out that nearly 81% (80.98%) of all Ethereum-based NFTs snapped up between April 1 and September 25, is being owned by the top 16.71% of all NFT hodlers on the blockchain. Meaning, the remaining 83.29% NFT owners were only able to snap up just a handful of tokens during that time.

The report which was published on Thursday Oct. 21, revealed that the analysis was carried out on over 7 million Ethereum-based NFT transactions within that period.

Moonstream figures seems to be having a close semblance to the Pareto Principle though, or rather, the 80/20 rule. Of course, that isn’t an uncommon factor across different sectors and markets. The principle operates on the notion that around 80% of outcomes come from 20% of the causes.

One Reddit user simply identified as “xddemonesque”, was particularly impressed seeing the Pareto principle show even in a traditionally ‘irrational’ market as this.

Meanwhile, Moonstream’s data set focuses only on ERC 721 tokens. It doesn’t source data from centralised APIs or from Layer 2 networks like Polygon.

Moonstream data reports in details

Moonstream revealed that its scan of 1,145,767 blocks resulted in transfer activity for 7,020,950 tokens from 9,292 NFT contracts. And this was done across 727,102 addresses. Also according to the report, the mints and transfers were what formed the core of the dataset.

Although one can easily see the massive inequality of NFT ownership on Ethereum as highlighted by Moonstream, the firm believes that small investors are totally welcome to participate in the NFT market, pointing to most of NFT holders being small time  purchasers who are likely making their purchases manually.

In short, there are only a few entry barriers for those who really wish to participate in the market, Moonstream says.