Researchers take institute that roughly 11,000 entities are responsible for more than half of Bitcoin's (BTC) on-chain volume.

According to a written report published by the National Agency of Economic Research (NBER) on Thursday, xi,043 on-chain entities correspond 55% of the volume on the Bitcoin network. Cryptocurrency exchanges were estimated to account for iii-quarters of on-chain volume.

The report found that the top 1,000-largest investors control roughly 3 million BTC or 15.nine% of circulating Bitcoin, while the next 9,000-largest investors hold roughly 2 1000000 BTC combined or x.6% of circulating Bitcoin.

The written report's authors conclude that the network remains highly centralized despite the surge of new investors enticed past BTC's 2022 bull market, stating:

"The Bitcoin ecosystem is still dominated by big and concentrated players, be it large miners, Bitcoin holders or exchanges."

However, the written report also noted that private Bitcoin holders currently represent eight.v million BTC or 45.ane% of supply.

The NBER besides identified significant concentration within the Bitcoin mining sector, estimating that ten% of the miners control ninety% of the global hash rate. The study added that roughly 50 miners (approximately 0.1% of the network) command 50% of the Bitcoin network's full hashing power.

While the NBER claims the centralization of the hash rate places the Bitcoin network at significant risk of a 51% attack, the report does non offer a hypothetical state of affairs in which the earth's pinnacle miners would be incentivized to launch an assail on the network.

Related: Number of investors owning Bitcoin has tripled since 2022: Gallup Poll

According to Cambridge Academy's Bitcoin Electricity Consumption Index (BECI), the global distribution of hash power has pluralized significantly since September 2022 — when China's share peaked at 75.five%

While Communist china'south renewed crackdown on domestic Bitcoin miners has been credited with driving a recent exodus of miners seeking inexpensive electricity in Due north America, Cardinal Asia and Eastern Europe, the BECI's data suggests that Chinese hashing power had already fallen by 40% earlier the April clampdown.