How the concentration figures are calculated
For each valid chain, divide its TVL by the sum across all valid returned chains. Square those fractional shares, add them together and multiply by 10,000 for the displayed HHI. The effective chain count is the reciprocal of the sum before multiplication. Both calculations use the full valid response, even when your search or minimum TVL filter hides most rows. Cumulative displayed share covers only the visible ranked rows.
Why chain count and effective count differ
Suppose a hypothetical universe contains three chains with shares of 50%, 30% and 20%. Their squared shares total 0.38, giving an HHI of 3,800 and an effective count of about 2.63 equally sized chains. The three chains still exist; the lower effective count simply summarizes their unequal sizes. A different snapshot with three equal shares would have an effective count of three.
Use the result as a research question
A high concentration reading can prompt a closer look at which protocols dominate the leading chain, whether the mix has changed, and whether stablecoin activity is similarly concentrated. It does not establish that smaller chains are undervalued or that larger chains are safer. New provider coverage can change the denominator without any transfer of assets. Preserve the source receipt and filtering context when recording comparisons, and avoid presenting two independently loaded snapshots as synchronized measurements.