More people does not mean more volatility. It's exactly the opposite. More people mean better distribution and this counteracts volatility.
If you have 100 units of something and 20 belongs to 1 person, 30 to another person and the rest is distributed among 5 other people. If each of these smaller holders sells the price will already move by a lot (10%) and if one of the big holders sell you could have a 30% swing. But what if each person got 1. 1 person selling would only mean a 1% move.