Less Than 5% of Wallets Generate Most On-Chain Value: Report

A new report from blockchain analytics firm Flipside reveals that a very small cohort of blockchain users is responsible for most of the value being transferred across 24 major networks.

The firm tracked more than 400 million addresses and found that wallets with high engagement scores — what it calls “high-quality users” — consistently move the most funds. These users comprise only a small portion of total addresses but are responsible for the bulk of transfer volume.

“The vast majority of addresses on each blockchain fall into the low-value range, with only a small percentage achieving medium or high-value status,” Flipside said.

The blockchain analytics firm — backed by $50 million in funding from Republic Capital, Galaxy, Dapper Labs, and others — uses a 0-15 scoring system to rank wallets based on a “rolling 90-day window of activity across key engagement areas.”

Most wallets land in the “low-value” category with a score between 0 and 3. But users who score 8 or higher — less than a few percent on most chains — tend to show strong and steady transfer behavior, per the report.

Flipside notes that the higher a wallet’s score, the more value it usually moves, and this pattern appears across all blockchains studied, including Ethereum, Solana, Arbitrum, Aptos, and Base.

Quality Over Quantity

The report reveals that even wallets with medium scores — between 4 and 7 — tend to contribute far more volume than the lowest-scoring group. When comparing the number of quality users scoring 4 and above to the total volume moved, the difference is evident, as nearly all chains show that this group handles most of the activity.

The key takeaway, Flipside notes, is that the true drivers of value in blockchain ecosystems are “high-quality users,” who engage “deeply, transact regularly, and contribute meaningfully to the network.”

The firm added that this quality-centric mindset “may prove to be a critical differentiator” in an increasingly competitive blockchain landscape.

Other studies also reveal that even when examining specific tokens, centralization among a small number of wallets persists. For example, Bitquery’s 2023 analysis found that the top 10 holders of USDT controlled about 24% of its supply, while the top 10 USDC holders held over 12%, though it’s unclear how much of that belonged to centralized exchanges.

In 2025, those figures have climbed. According to IntoTheBlock data, whales now hold 61% of the USDT supply, while 56% of USDC is also concentrated in large wallets, indicating increased centralization despite expanding usage.