@rosemaryhosea
Concentration risk arises when a small group of wallets controls most activity or supply. Analyze token holder distribution, whale wallet activity, and staking dominance to detect imbalance. High concentration may enable manipulation or governance capture. Healthy ecosystems show broad user participation across geographies and use cases. Evaluate transaction volume diversity and whether growth comes from organic adoption or a few large players. Broad distribution fosters resilience and reduces systemic risk, while concentration often undermines decentralization and market trust.
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