ERC20 Altcoin Analysis: Most high-yield tokens are concentrated

On September 25th, LongHash attempted to discover the small-capital tokens that performed well this year by analyzing the ERC20 tokens issued at Ethereum. The study selected the top 1000 ERM20 tokens, but excluded the tokens and stable currencies with a market value of more than $1 billion, for a total of about 900 tokens. Including price, annualized rate of return from 2019 to date, trading volume, number of currency holding addresses, market value, and concentration of token distribution. The analysis showed that from the perspective of profitability, more than half of the token yields were negative, but 38 tokens yielded more than 500%. These 38 amazing tokens have a high degree of token distribution. Most of them are more than 60% concentrated, and some even more than 90%. In addition, there is a certain correlation between the rate of return and the market value and trading volume, while the concentration of token distribution is ranked third, and the correlation with the yield is only 0.076. However, when only the tokens with a market value of less than $10 million are considered, the correlation between the remaining attributes and the rate of return is decreasing, and only the attribute concentration of the token distribution is increased. This shows that there is a certain correlation between the rate of return and the market value and the volume of transactions, while the concentration of token distribution is ranked third, and the correlation with the rate of return is only 0.076. However, when only the tokens with a market value of less than $10 million are considered, the correlation between the remaining attributes and the rate of return is decreasing, and only the attribute concentration of the token distribution is increased. This shows that the more concentrated the small market value token chips, the more likely it is to obtain high returns.