CryptoPunks, digital collectibles created by Larva Labs, have a high concentration of whales. 10 wallets own 1,410 digital assets, but the collection’s robust market cap of $ 3.1 billion makes it less prone to manipulation, according to a report released by data aggregator and analyst firm DappRadar.
As part of its research on non-fungible tokens (NFT) and cryptocurrency whales – a term used to describe individuals or entities that own significant amounts of currency or cryptoassets – DappRadar uses a network indicator-based method for the NFT space – the Whale Concentration Index. The index measures how diluted or concentrated a collection is, indicating the number of items that belong to the 10 largest wallets in a given collection.
They found that the CryptoPunk whales are heavily focused on the Larva Labs collections as they do not own any other cryptoassets other than Art Blocks with 427 NFTs, CryptoPunks with 1410 cryptoassets and Meebits, which are also being developed by Larva Labs, according to the analysis, with 1329 NFTs. …
Details on Pudgy Penguins in the NFT space
Pudgy Penguins and BAYC are some of the most common collections in the NFT space. Likewise, Cool Cats whales also tend to exhibit diversified NFT strategies.
While CryptoPunks whales are a less diversified group, BAYC whales, unlike Larva Labs whales, appear to have a very diversified NFT investment strategy, the report said. Apart from BAYC and the Bored Apes Kennel Club, Bored Ape whales have “significant stocks” in Art Blocks and Meebits. Additionally, 40% of BAYC whales have at least one CryptoPunk in their collection, DappRadar said, adding that:
“Collections such as BAYC and Art Blocks, whose average prices have increased significantly recently, are being used as a way to make a profit. While Art Block whales choose to re-invest in their beloved collection, BAYC whales are looking to discover new NFT gems by diversifying their holdings. “
Art Blocks whales own “important assets” in CryptoPunks and Meebits, holding together 211 and 414 shares respectively, he added. In addition, “Pudgy Penguins are loved by whales as 202 penguins also belong to Art Block whales.”
Axie Infinity collectible whales are mainly focused on in-game NFTs, with only two whales holding diverse portfolios of collectible NFTs.
For DappRadar, BAYC appears to be the healthiest collection in terms of market manipulation due to its low whale concentration index and an impressive $ 1.1 billion market cap.
“For the six analyzed collections, there are no concerns about market manipulation,” the report says. “Those collections that can target a more concentrated offering, such as Larva Labs projects, have already been established as leading NFT collections, so the risk is greatly reduced.”
New collections such as the Pudgy Penguins are “more likely to be manipulated,” although their concentration numbers show a well-distributed project despite their recent launch, ”concluded DappRadar.