Holder distribution
Holder distribution shows how tokens are distributed across addresses at a given point in time. It can help you see whether many tokens are held by a few large addresses.
What is holder distribution?
A holder is usually an address with a positive balance. Holder distribution counts these addresses and looks at what share of the token supply they hold.
This doesn’t mean each address belongs to one person. One person can use multiple crypto wallets. A large address could also belong to a crypto exchange that holds tokens for many customers.
A simple example of holder distribution
Suppose the ten largest addresses hold a large share of all tokens. The distribution is then concentrated: relatively few addresses hold many tokens.
But always check what those addresses belong to. A large balance at a crypto exchange may represent many customers, not one large holder.
Why does holder distribution matter in crypto?
Holder distribution provides context for a project’s tokenomics. A small number of large addresses may have significant influence if those tokens can be freely moved or sold.
In crypto news, the distribution may change when tokens move to a crypto exchange, a large address transfers tokens, or tokens are released. Such a change needs context: an address could also be a treasury, bridge, or technical contract.
Distribution doesn’t predict price or prove who is behind an address. A broad distribution also doesn’t automatically mean a project is decentralized, safe, or appealing.