Data reveals that DOGE holdings are highly concentrated, raising concerns about security and stability.

Recently, a Crypto Assets rating agency published a compelling blog post discussing a well-known entrepreneur's previous concerns about the over-centralization of DOGE. After in-depth analysis, the agency concluded that this viewpoint indeed has merit. Through comparative studies with other mainstream Crypto Assets, the concentration of DOGE was confirmed to be the highest.

Data shows that the distribution of DOGE is clearly unbalanced. A single address holds as much as 36.8 billion DOGE, accounting for about 28% of the total circulation, which is approximately valued at 2.1 billion dollars at the current market price. Even more concerning is that just 20 of the largest holders control nearly half of the DOGE supply.

To illustrate this phenomenon more intuitively, the research institution compared the proportion of the top 50 addresses holding various major Crypto Assets relative to the circulating supply:

• DOGE: 62%
• Litecoin: 30.5%
• Bitcoin Cash: 24%
• Bitcoin SV: 21%
• Dash: 18%
• Bitcoin: 10.5%
• Ethereum: 45%
• TRON: 34%
• Terra (LUNA): 30%

This highly centralized holding structure has raised concerns among industry insiders. Firstly, it increases the risk of a 51% attack on the network, threatening the security of the system. Secondly, a large number of tokens are concentrated in the hands of a few, which may lead to drastic price fluctuations. Although these large holders currently have no intention of selling, they could affect the market at any time, and this potential uncertainty is enough to deter some prospective investors.

Experts point out that the degree of centralization of DOGE not only affects its practicality as a payment method but may also hinder its application in a broader financial ecosystem. To promote the healthy development of DOGE, industry insiders are calling for measures to encourage a wider distribution of tokens to enhance its characteristics as a decentralized Crypto Asset.