Chainlink Non-Circulating Supply Unlocks and Market Impact
In June 21, Chainlink (LINK) vesting contracts released 21 million non-circulating tokens worth almost $300 million. This unlock represents a substantial supply inflation that could affect the token’s price as selling pressure increases.
- SpotOnChain report indicates 18.75 million LINK transferred to Binance for immediate sale.
- 2.25 million LINK sent to a multisig wallet, holding a significant portion for future unlocks.
Chainlink Non-Circulating Supply Unlocks Over the Years
Since August 2022, Chainlink has unlocked and sold a total of 127 million LINK tokens, with 107.7 million deposited to Binance over two years, resulting in a 26.4% inflation in circulating supply.
There have been eight significant “unlock and deposit to Binance” events, ranging from 6.1 million to 18.75 million LINK, without major impacts on price.
Chainlink Price Analysis
Currently trading at $13.78, Chainlink has seen a 127.6% year-over-year gain, with an exchange rate of $6 per token in June 2023, displaying strong performance despite supply inflation.
- Chainlink’s Oracle solution serves the growing narrative of real-world asset tokenization.
- BlackRock and Franklin Templeton’s interest in RWA tokenization could boost related projects and institutional capital flow into the cryptocurrency market.
Hot Take: Future Outlook for Chainlink
The unlocking of non-circulating tokens and subsequent potential sell-off could temporarily impact Chainlink’s price, but the strong demand and utility of the Oracle protocol may help maintain its growth trajectory despite supply pressures. Keep an eye on developments in the RWA tokenization space, as they could further drive Chainlink’s adoption and value in the market.
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