The way I see it, if Steem is well distributed amongst many users, price drops wouldn't have as much effect as they do now.

Think about this: each time Steem price drops, it also drops on coinmarketcap rankings. That means Steem is suffering from more than just the general price dip.

This is because some accounts control a lot of Steem. If they offload their Steem into the market (as some did recently), the price would dip faster.

On the other hand, if Steem were distributed among many users/investors, it would take a major panic sale for Steem to lose price and lose rank on coinmarketcap.

As a bonus, if Steem were greatly distributed, it would take a lot of pump before a single user can amass a lot of Steem. This is because not everyone is always willing to sell even during a price pump. On the flip side, a whale can always offload half of his holdings to take advantage of a price pump