Bitcoin Supply Becoming Less Whale-y Over Time!

Let’s face it: Whales have traditionally been a bit of a pain in the blockchain for cryptocurrency investors. The concentration of ownership of Bitcoin amongst these large-scale traders, and their ability to dramatically manipulate the price of an asset, can put smaller investors at risk and make the market less stable.

However, it appears that an analysis from Glassnode has identified good news: Bitcoin is becoming less and less concentrated on these whales.

The Move to Decentralization

Glassnode has identified a long-term trend of Bitcoin supply decentralization due to the reduction of coins held by these big traders. They cite data from 2019 indicating that approximately 500 wallets held 40% of the total Bitcoin supply. But according to recent information, only around 400 wallets hold that same 40%. This indicates that, over time, a greater number of individuals are holding Bitcoin as opposed to just whales.

What’s more, these whales are typically holding onto these coins for longer periods of time. This could indicate the market is waiting for better prospects before releasing the coins into circulation.

Good News for Crypto Folks

The news that Bitcoin is becoming less concentrated amongst whales may sound a little dry, but it is actually great news for the crypto crowd:

  • The market will be more stable. By decentralizing the ownership of coins, it is harder for larger traders to manipulate the price of coins, making it easier for investors to make accurate predictions.
  • The crypto userbase is growing. The reduction of coins held by whales is indicative of greater numbers of individuals investing, which could lead to more possibilities for new use cases to be explored.
  • It’s just so easy to brag. Not many investors can say they are part of a growing trend towards decentralization of Bitcoin supply. Which is more than enough for a smug status update to your friends and family!

So next time someone accuses Bitcoin owners of being part of the “Whale Club”, you can say: “No, no, I’m part of the “Trending Towards Decentralization Club!’”


While Bitcoin still has some way to go before the concentration of ownership is completely decentralized, the trend revealed by Glassnode is an indicator that progress is being made. In the end, this is great for the nascent cryptocurrency community as it means greater stability in the market and an opportunity for new investors to get involved. Now excuse me, I’m off to make my smug social media update!