In a significant development for the cryptocurrency market, Chainlink’s (LINK) supply on exchanges has hit a 4-year low. This trend indicates a potential bullish outlook for the digital asset, as it suggests that investors are holding onto their LINK tokens rather than selling them on exchanges.
🔗📈 #Chainlink enjoyed a mini breakout this weekend, hitting $15.82 for the first time in 2 weeks. The supply of $LINK on exchanges is below 15% for the first time in ~4 years, and the amount of >0 coin wallets is within 6% of its #AllTimeHigh. https://t.co/IodNDKZl5q pic.twitter.com/OLTFxfuVlw
— Santiment (@santimentfeed) January 15, 2024
According to data from Santiment, a leading on-chain analytics firm, the supply of LINK on exchanges has fallen to under 15%. This figure represents the lowest this metric has reached in four years, with the last time exchange balances stood at these levels being in February 2020.
This decrease in supply on exchanges is significant as it implies that a net amount of LINK is currently leaving the exchanges. Such a trend could be a sign that investors are accumulating, which can naturally be bullish for the price in the long term.
LINK Wallet Addresses on the Rise
In addition to the decrease in supply on exchanges, the number of LINK wallets with more than zero coins has also seen an increase. As of January 10, the wallets numbered 713,560. This increase in wallet addresses suggests a growing interest in LINK among investors.
Despite the broader crypto market’s lackluster performance, Chainlink has managed to hold above the $12 level since breaking higher in late October. This resilience in the face of market volatility underscores the strength of the LINK token and its growing popularity among investors.
According to data from CoinMarketCap, the cryptocurrency LINK is currently trading at $15. The total market capitalization of LINK stands at $8,556,608,861. The recent approval of Bitcoin ETFs has set the stage for an altcoin surge in 2024, and LINK, with its reduced supply on exchanges and increased wallet addresses, is well-positioned to benefit from this trend.
In conclusion, the decrease in LINK’s supply on exchanges, coupled with an increase in wallet addresses, paints a bullish picture for the token. As the crypto market gears up for a potential altcoin surge, LINK could be one to watch.
