The Gini Coefficient is a measure of inequality, commonly used to evaluate income distribution within a population. In the context of cryptocurrencies, it analyzes the distribution of wealth among addresses holding a particular asset.Values range from 0 to 1. A Gini Coefficient of 0 indicates perfect equality, where every address holds the same amount. Conversely, a value of 1 signifies extreme inequality, where one address controls all the wealth.Monitoring the Gini Coefficient helps assess the centralization of wealth in a cryptocurrency network. A high Gini Coefficient might suggest that a few addresses hold a significant portion of the coins, raising concerns about market manipulation and fairness. Low values usually indicate a more decentralized distribution, promoting a healthier ecosystem.Investors and analysts use the Gini Coefficient to gauge the long-term sustainability and fairness of a cryptocurrency. It can signal potential risks and opportunities, influencing decisions about buying, holding, or trading a particular asset.

China Reaffirms Strict Oversight on Virtual Currencies at Financial Street Forum
China’s central bank reiterated its tough stance on virtual currency activities as the 2025 Financial Street Forum Annual Meeting opened

