According to IntoTheBlock, a data science company that provides on-chain analytics for the crypto market, most Chainlink holders are losing money. The firm reports that 88% of Chainlink addresses are out of the money, meaning that the current price is lower than the average price at which they bought the asset.
This situation is similar to what happened in early 2023 when Chainlink reached a local bottom before rebounding. To confirm this hypothesis, it may be useful to examine the global In/Out of the Money indicator, which shows the distribution of addresses by profitability across different price ranges.
The Global In/Out of the Money from IntoTheblock is an indicator that categorizes addresses based on their profitability, breakeven, or loss at the current price. According to this indicator, only 11% of Chainlink holders are making a profit on their positions at the current price.
The Numbers Don’t Look Promising, but Could Still Recover
On the other hand, 86% of Chainlink holders are at a loss on their positions at the current price. The remaining 2% are neither making nor losing money on their positions at the current price.
The breakeven price indicator shows the distribution of addresses by their profit or loss status. Out of 636,660 addresses, only 17.65% (112,390 addresses) have made profits or realized gains. The majority of addresses, 80.11% (510,020 addresses), are in the red or have incurred losses.
The remaining 2.24% (14,250 addresses) are at the breakeven point, meaning they have neither gained nor lost anything. This indicator helps to understand the sentiment and behavior of the market participants.
The price of LINK dropped by 1.63% to $5.99 in the past 24 hours amid a bearish sentiment in the crypto market. The market was affected by the regulatory actions of the U.S. SEC against Binance and Coinbase, two of the largest crypto exchanges, earlier this week.
Chainlink had a positive development this week when it announced its partnership with SWIFT, the global interbank communication system, to test a new protocol that would enable SWIFT messages to trigger token transfers on various blockchain networks.
