The blockchain analytics group IntoTheBlock released data on Apr 8, which showed the Bitcoin (BTC) leading the decentralization metric at 12%, closely followed by Dash (DASH) at 16%, Bitcoin SV (BSV) at 26%, Bitcoin Cash (BCH) at 29%, Ethereum and Cardano at 40%, Litecoin (LTC) at 47%, Zcash (ZEC) at 53%, Ethereum Classic (ETC) at 73% and Chainlink faring the worst at 80%.
IntoTheBlock calculates the decentralization metric, using the “Concentration By Large Holders” data, which is derived from the number of addresses of a particular cryptocurrency, containing 0.1% to more than one percent of the supply.
The released statistics from IntoTheBlock reveals the various degrees of decentralization of prominent crypto-assets. The lower the number of large holders, the more decentralized and widely distributed a crypto-asset is. The higher the number of large holders, the more centralized and sparsely distributed a crypto-asset is. Generally, less decentralized crypto-assets are more prone to price manipulations, while more decentralized crypto-assets are less so. However, data for crypto-assets that support masternodes or some kind of staking facility, may not be accurate, as users resort to distribute and divide their held tokens, to maximize the number of masternodes or stakes, they are contributing to the network for rewards.