Token Holder Concentration

Token holder concentration measures the distribution of a token's supply among its participants. A high concentration, where a few wallets hold a large percentage of the supply, poses significant risks to the market.

It can lead to price manipulation and high volatility if large holders decide to sell. Conversely, a more decentralized distribution is generally seen as healthier and more resilient.

Analyzing holder concentration helps investors understand the potential for market manipulation and the influence of early investors. It is a key metric for evaluating the fairness and long-term viability of a token project.