If the cryptocurrency market has taught us one thing, it's that token distribution is a pivotal factor that can make or break a project. Analyzing the distribution of a token can offer vital insights into its potential trajectory, and the DBXEN's DXN token is no exception.
A Closer Look at the DXN Distribution:
At a first glance, it may appear as though a whopping 90% of all $DXN is dominated by just two addresses. However, going deeper paints a different picture:
Staked in DBXEN
A significant chunk, $1.27M or 82.25% of all $DXN, is staked in the DBXEN smart contract. Staking is very often seen as an indicative of confidence in a project's future, as holders lock their tokens to earn rewards and in such way participate in the ecosystem rather than selling their tokens on the open market. The amount of staking seen in DXN shows that DBXEN has a loyal and engaged community backing and trusting DXN ... and their daily yield 🙂
DBXENFT Involvement
Since the not so long ago release of DBXENFTs, a further $114K, or 7.35%, was staked in the #DBXENFT smart contract.
As DBXEN team is starting to talk of creating their own NFT market the above two staking percentages could increase even further going forward, especially if DXN stakers would be rewarded from transfers on such a new platform as proposed by @cryptobruhhh.
@razvancostin14 any comments?
Uniswap's Share
With Uniswap holding a mere 2.57% ($40K) of the $DXN tokens, it's clear that the majority of DBXEN holders prefer staking over speculating on exchanges.
Burned Tokens
The fact that 2% of $DXN has been sent to a dead address (0x00...dEaD) mainly by XENLON is significant because it decreased supply by +31k DXN tokens. However, this deflationary mechanism has been slowing down since May 2023 and DXN is in need of another burning mechanism to keep the burning momentum.
Tokens in Wallets & Elsewhere
Only 5.83% of DXN is residing in Ethereum wallets or other places. This slim percentage might represent the liquidity available for trading and could indicate limited selling pressure in the market.
Future Implications for DXN
Given this distribution, several potential implications arise for the future of DXN:
Robust Community Engagement: The significant amount staked shows Xenians are invested in the long-term success of DXN and this very strong community backing can be invaluable in driving initiatives, partnerships, and overall project growth (positive news for DBXEN team)
Potential Price Appreciation: The combination of high staking, limited exchange liquidity, and token burns can create a scarcity effect, potentially driving up the price due to the laws of supply and demand.
Ecosystem Expansion: With the involvement of an NFTs, $DXN might be looking at branching out into the a completely different world of digital collectibles, arts, or virtual real estates, presenting further utility and value propositions for its holders.
