Holder concentration measures how much of a token's supply is held by its largest holders. Common measures are the share held by the top 1, top 3 or top 10 wallets.
Why it matters
If a few wallets hold most of the supply, they can sell into buyers and crash the price at any time. Traders often use simple rules. For example, Amplified's earlier screening rules flagged tokens where one wallet held more than 5% or the top three held more than 11.25%.
Why simple percentages can mislead
Concentration checks are easy to game. A group can spread its supply across dozens of fresh wallets so no single wallet looks large. That is exactly what a bundled launch does. Real concentration only shows up when you group linked wallets together.
Exclusions to remember
Some top holders are expected, such as the liquidity pool itself or a burn address. Good tools label these, so they don't inflate or hide the real picture.
Educational content only. Not financial advice.