Meme Coin Analyst Murad Mahmudov Unveils 'Most Important' Statistics Table to Measure the Level of Decentralization in Meme Coins

Meme coins have taken the crypto sphere by storm, with viral coins like GOAT(GOAT), POPCAT(POPCAT), and MOODENG (MOODENG) generating market caps ranging from thousands to billions of dollars.

Meme coin analysis is a relatively new field, and there is still much debate about the best way to measure decentralization. However, Murad Mahmudov's nine metrics provide a comprehensive and nuanced approach to assessing the distribution of tokens among holders.

This information can be used by investors to make more informed decisions about which meme coins to buy.

Here is a brief overview of each metric:

**Median Holder Rank:** This metric indicates the rank of the median wallet holding the token. A lower rank reflects more equitable distribution among holders, signaling better decentralization. For example, a meme coin with a median holder rank of 100 would indicate that half of the wallets holding the token have more tokens than the median wallet, while the other half have less.

**Herfindahl-Hirschman Index (HHI):** This index measures the concentration of ownership of a token on a scale of 0 to 10,000. A lower score indicates higher decentralization, while a score of 10,000 signifies full centralization. For instance, a meme coin with an HHI of 1,000 would indicate that the top 100 holders collectively own 10% of the tokens, while a score of 5,000 would indicate that the top 250 holders own 50% of the tokens.

**HolderScan Distribution Score:** This score evaluates the quality of token distribution on a scale of 0 to 100. A higher score denotes better decentralization. For example, a meme coin with a HolderScan Distribution Score of 80 would indicate that the tokens are well-distributed among a large number of holders, while a score of 20 would suggest that the tokens are concentrated in a few wallets.

**Top 100 Holders Concentration:** This metric shows the percentage of tokens that are held by the top 100 largest holders. A lower percentage indicates better decentralization. For instance, a meme coin with a Top 100 Holders Concentration of 5% would indicate that the top 100 holders collectively own 5% of the tokens, while a concentration of 25% would signify that the top 100 holders own a quarter of the tokens.

**Top 25 Holders Concentration:** This metric displays the percentage of tokens that are held by the top 25 largest holders. A lower percentage indicates better decentralization. For example, a meme coin with a Top 25 Holders Concentration of 2% would indicate that the top 25 holders collectively own 2% of the tokens, while a concentration of 10% would denote that the top 25 holders own one-tenth of the tokens.

**Top 10 Holders Concentration:** This metric showcases the percentage of tokens that are held by the top 10 largest holders. A lower percentage indicates better decentralization. For instance, a meme coin with a Top 10 Holders Concentration of 1% would indicate that the top 10 holders collectively own 1% of the tokens, while a concentration of 5% would signify that the top 10 holders own five one-hundredths of the tokens.

**Percentage of Wallets Holding More Than $1,000 Worth of the Token:** This metric displays the portion of wallets that hold more than $1,000 worth of the token, expressed as a percentage. A higher percentage indicates better decentralization. For example, a meme coin with a Percentage of Wallets Holding More Than $1,000 Worth of the Token of 20% would indicate that 20% of the wallets holding the token have a balance exceeding $1,000, while a percentage of 5% would denote that only 5% of wallets meet this threshold.

**Ratio of Wallets Holding More Than $1,000 Worth of the Token:** This metric shows the portion of wallets that hold more than $1,000 worth of the token, expressed as a ratio. A higher ratio indicates better decentralization. For example, a meme coin with a Ratio of Wallets Holding More Than $1,000 Worth of the Token of 1:5 would indicate that for every five wallets holding the token, one wallet has a balance exceeding $1,000, while a ratio of 1:25 would signify that for every 25 wallets, only one meets this threshold.

**Percentage of New Wallets Created Within the First Week of a Token's Launch:** This metric measures the percentage of new wallets that were created within the first week of a token’s launch. A lower percentage indicates healthier decentralization. For example, a meme coin with a Percentage of New Wallets Created Within the First Week of a Token's Launch of 5% would indicate that only 5% of the wallets holding the token were created during the first