LINK, the native cryptocurrency of the decentralized Oracle platform Chainlink, has reached a three-year high.
The news is good for LINK owners, but not necessarily on the wealth equality scale. According to Glassnode, the top 1% of owners now own over 80% of the offer.
The on-chain market intelligence company explains:
“The percentage LINK balance of the top 1% addresses just reached a 3-year high of 81.737%. The previous 3-year high of 81.658% was observed on January 14, 2021. “
Compare with other cryptocurrencies
Looking at the data submitted by Glassnode, the apparent rise in ownership began in mid-2019. This is close to the start of the bull run, so a company may have stocked up in preparation.
Chainlink seems unfairly distributed given the percentage of top LINK wallets. However, the same trend can be seen with almost every other cryptocurrency.
This can even be seen in Bitcoin, the first crypto to successfully implement a distributed and decentralized currency. The world’s largest cryptocurrency by market capitalization is highly centralized, according to some.
The data is a little more difficult to determine because it is not properly aggregated. According to BitInfoCharts, it could be argued that the top 2.44% of the richest wallets own the most Bitcoin. Any balance of 1 BTC or more makes up over 94.94% of all coins.
It gets a little crazier as you dig deeper. The top 0.4% of the addresses own 85.5% of the offer. The 2,500 largest wallet addresses, which make up 0.01% of the Bitcoin network, own almost 43% of all Bitcoin addresses in circulation.
The distribution of ether isn’t much better as the top 100 wallet holders control over 35% of the supply in circulation.
Although the US is rapidly increasing its money supply, a September 2017 study by the Federal Reserve found that the top 1% in America controlled 38.5% of total wealth, which is in no way inferior to cryptocurrencies like BTC or LINK.
What is Chainlink (LINK)?
Chainlink is a decentralized Oracle network that supplies intelligent contracts with real data. With the introduction of dApps (decentralized applications) it became necessary that reliable, current data be imported decentrally.
This is where Chainlink comes in. It offers tamper-proof inputs and outputs to facilitate transactions on the blockchain. This type of network is required for applications in many industries, including finance and social media.
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