More precisely, the data contained in the report claim that over 80 percent of the total supply of ETH coins are held by addresses with a balance higher than 1,000 ETH. The number of such addresses adds up to 7,572. The research breaks down the total number of addresses by volume of ETH they contain, stating that 6,490 addresses hold between 1,000 and 10,000 ETH, 923 of them hold between 10,000 and 100,000 ETH, 155 between 100,000 and 1,000,000 ETH and only four between 1,000,000 and 10,000,000 ETH.
Still, the most recent hard fork before last month’s Constantinople and St. Petersburg updates actually saw the price of ETH decrease by under one percent, which the report suggests is in part due to the decrease in block rewards from 5 ETH to 3 ETH.
Most of the ETH being staked in decentralized finance apps — reportedly 98 percent — is in MakerDAO smart contracts, which permit the creation and destruction of the Maker’s decentralized stablecoin Dai (DAI). The second decentralized finance app with the most staked ETH is the decentralized lending platform Compound, which held roughly 28,500 Ethereum as of March 3.
Lastly, the report also raises concerns over technical risks facing Ethereum in the near future. In particular, the documents points to the alleged centralization of Infura, the infrastructure-as-a-service arm of Ethereum-focused development company ConsenSys. Infura allows DApp developers to deploy their DApps without hosting their own full node.
However, by using Infura, the report argues, developers rely on infrastructure entirely operated by ConsenSys and hosted by Amazon Web Services, which creates a single point of failure that decentralization is meant to avoid.
The report’s author, Delphi Digital, positions itself as a company aiming to produce unbiased content concerning digital assets and Distributed Ledger Technology (DLT) and to provide analysis services to institutional clients. The company also counts Morgan Creek Digital Assets founder Anthony Pompliano as a member of its board of directors.