Weiss Ratings concerned over just a few wallets controlling 80% of ETH

09 Mar, 2019
by Richard Allen
Weiss Ratings concerned over just a few wallets controlling 80% of ETH

Recent reports have indicated that just 7,500 Ethereum wallets possess 80% of the total circulating supply of Ethereum. Weiss ratings have come out in response to these reports, raising concerns that this may present a challenge when the project looks to adopt a proof-of-stake (PoS) consensus algorithm.

Titled Entering Ethereum: Long-term Value Potential and Analysis, the report states that the small number of wallets controlling the vast majority of Ethereum circulating supply is bringing up questions regarding the sustainability of Ethereum decentralization.

Weiss ratings state, however, that Ethereum is the most decentralized PoS ledger that they’re aware of, likening it to BNB where the top five accounts also hold the vast majority of the entire supply.

Despite the report warning against having such few wallets controlling such a large portion of ETH’s supply, Ethereum is one of the most decentralized projects around. It’s a strong point Vitallik Buterin has brought up during his rivalry with TRON’s Justin Sun, who boasts 10,000 transactions per second.

Read more: ETH vs TRON: What's the beef between Vitalik and Justin Sun about?

The report goes on to say that after each of Ethereum’s five hard forks, the price of ETH has dropped by 19% on average over the following 30 days. The Byzantium hard fork and the more recent Constantinople fork have resulted in significantly smaller price drops.  

Read more: Is Ethereum at $100,000 really possible?

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