Concentration of on chain chips in ARB The ARB Herfindahl index is used to measure the share of network addresses in the current supply, known as chip concentration. A high index indicates that a small number of large holders are dominating the market, while a low index indicates a more even distribution of chips. When TOKEN was first issued, early holders often concentrated a large amount of supply and had high control over the market, resulting in a higher Herfindahl index. As these early holders sold off, the index began to decline, reflecting a gradual shift in token distribution from concentration to dispersion. The following figure shows the three stages of ARB's Herfindahl index: 1. From December 2023 to December 2024, the Herfindahl index began to decline from a high of 0.14 until December 2024, when it reached a low of 0.004 and the index bottomed out. Throughout this process, regardless of price fluctuations, the ARB developed towards a more diversified trend. 2. From December 2024 to April 2025, the Herfindahl index has been hovering at the bottom. 3. Since early April 2025, the Herfindahl index has been rapidly rising from the bottom and has now exceeded its historical high. As of now, the Herfindahl index has reached around 0.308, completing the dispersion path of the previous two years in just one month. Starting from early April 2025, ARB prices have also risen from a historical low of around 0.25, currently around 0.38. It's hard to say whether the concentrated chips caused a pullback, but currently, the concentration of chips is indeed very high. And it's a historical high Fuge @ FLs_OTC, are you interested in seeing this? Haha More concentrated chips may not necessarily lead to a pullback, but they are more conducive to controlling the market and can amplify volatility. For example, since April, the coin price has risen by nearly 100%. Has the concentration of chips reached a good level now, which means they can be significantly increased. It's hard to say, we can continue to observe, but if we pull up at the same time, it will return to the issue of the ARB track. It definitely depends on ETH's expression. If ETH is not good, then the on chain ecosystem will definitely not look good either. It also depends on BTC's expression The above is only for learning reference and not investment advice.