According to a study carried out by analysis service Glassnode, crypto exchanges store about 10% of all Bitcoins in circulation. Over the last three years, the number of bitcoins controlled by trading platforms has grown by 700%. Analyst Charles Edwards has said:
"Only a few months ago, TokenAnalyst had total Bitcoin on exchanges at ~6.7% total supply. Today, Glassnode puts that figure at >10%!"
For example, US crypto trading platform Coinbase holds 5% of all Bitcoins in circulation.
According to Edwards, Bitcoin "is becoming more centralized." At the same time, in terms of asset centralization, Bitcoin shows a lower level than other altcoins.
The problem of asset centralization is particularly affects crypto systems based on the proof-of-stake consensus algorithm, since it gives crypto owners the right to vote on project decisions.
last yearWeiss Ratings downgraded the EOS project rating from "B" to "C-" because, according to the firm, the project is too centralized: 100 EOS token owners, who represent 0.01% of the total, control around 68% of all votes.
Access more than 50 of the world's financial markets directly from your EXANTE account – including NASDAQ, London Stock Exchange and Tokyo Stock Exchange.
Subscribe to our Telegram channel to stay up to date on the latest crypto and blockchain news.