Grayscale’s Chainlink Trust Surges to 200% Premium
The Grayscale Chainlink Trust (GLNK) has experienced a significant surge, reaching a premium of 200% compared to the current LINK market prices. In the last week alone, GLNK saw a remarkable increase of almost 100%, closing at $39 on Monday from its level of $21 on October 31. It is important to note that LINK’s price has also doubled over the last three weeks amid the broader cryptocurrency market recovery.
Institutional Demand Drives GLNK to 200% Premium
According to CoinMarketCap, the 12th-largest crypto by market cap was up by approximately 25% over the past week and was currently trading at $13.50. The spread was first observed by popular Chainlink influencer ChainLinkGod, highlighting that Grayscale trusts are non-redeemable, making them a “one-way door” and unable to be “efficiently arbitraged against the spot market.” Despite this, CoinShares’ report revealed that the product attracted $2 million worth of inflows over the last week.
Catalyst for LINK Gains
LINK’s monthly surge of over 85% is attributed to several factors. Non-zero LINK balances have increased significantly, indicating heightened on-chain activity. Additionally, whale accumulation is strong, with one entity purchasing an astonishing 312,901 LINK tokens valued at over 3.81 million this week. The adoption of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) by institutions and cross-chain projects may also be contributing to LINK’s price surge.
The CCIP has been incorporated across various platforms such as Ethereum, Polygon, Avalanche, Optimism, Arbitrum, and Base. SWIFT announced successful blockchain interoperability tests with multiple financial institutions using the protocol, further demonstrating its widespread adoption.
Hot Take: Chainlink’s GLNK Soars to Record Premium Amidst Institutional Demand
The surge in demand for Grayscale’s Chainlink Trust (GLNK) among institutional investors has driven its premium to unprecedented levels. LINK’s price gains are fueled by increased on-chain activity and strong whale accumulation while the widespread adoption of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) further supports its upward momentum in the market.
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