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19 million Chainlink tokens transferred to exchanges
The cryptocurrency market has experienced strong bearish pressure over the past week, and the Chainlink price (LINK) was no exception. The altcoin has continued to struggle through its torrid form, losing nearly 10% of its value over the past seven days.
Interestingly, the bears still appear to be in control at the moment, with the latest on-chain revelation suggesting that there could be further downside for the LINK price in the coming days.
Are Chainlink Investors Dumping Their Assets?
Famous crypto analyst Ali Martinez revealed in a post on Platform X that huge amounts of Chainlink tokens arrived on centralized exchanges last day. This on-chain observation is based on Santiment’s “Supply on Exchanges” metric, which tracks how much of a particular cryptocurrency is held on centralized exchanges.
When the value of this metric increases, it means that investors are making more deposits than withdrawals of a cryptocurrency (Chainlink, in this case) on centralized exchanges. A decrease in the value of the metric, on the other hand, indicates that holders are moving their coins of trading platforms.
According to data from Santiment, more than 18.77 million LINKs (worth approximately $256.2 million) were transferred to cryptocurrency exchanges over the past day. This substantial transfer represents one of the largest daily movements for the Chainlink token in recent months.
It is interesting to note that a report from SpotOnChain revealed that 21 million tokens were unlocked from Chainlink’s non-circulating supply contracts on Friday, June 21. Specifically, the transferred contract has 2.25 LINK tokens sent to the 0xD50f multi-sig wallet
Notably, 18.25 million LINK tokens were sent to Binance, the largest cryptocurrency exchange in the world. This significant token unlock presents a case of supply inflation, which can impact the value of the token, especially if a fire sale occurs.
Furthermore, these fund movements can accelerate an increase in market volatility and possibly lead to price fluctuations. Given the size and destination of these transfers, there is a greater likelihood of increased selling pressure, which may drive the price of LINK lower.
Is there a $12 return on the cards?
As of this writing, Chainlink price is barely holding above $13.6, having fallen by more than 3% over the past day. Meanwhile, according to data from CoinGecko, the altcoin has fallen by 9% over the past week, from around $15 to $13.5.
If the recent selling pressure continues, then further decline could be on the horizon for LINK’s price. This could see the cryptocurrency return around the $12 price zone for the first time in more than a month.
However, the Chainlink token ranks among the top 20 largest cryptocurrencies in the industry, with a market capitalization of over $8.27 billion.
Featured image of Binance Academy, TradingView chart