Chainlink Supply On Exchanges Hits Four-Year Low
Data from on-chain analytics firm Santiment reveals that Chainlink’s recent surge in price coincides with a significant drop in its supply on exchanges. The term “supply on exchanges” refers to the percentage of the total circulating Chainlink supply stored in centralized exchange wallets.
Typically, an increase in this metric suggests that investors are depositing coins to exchanges for selling purposes, which can be bearish for the asset’s price. Conversely, a decrease indicates that a net amount of the cryptocurrency is leaving exchanges, potentially indicating accumulation by investors and a bullish outlook for the long term.
A chart displaying the trend in Chainlink supply on exchanges demonstrates a sharp decline, reaching its lowest level since February 5th, 2020. This reduction in supply has coincided with a rebound in LINK’s price following a dip below $13. It also signifies a move towards self-custody, which is beneficial for any cryptocurrency as it reduces the market impact of centralized entities.
LINK Price
Currently, Chainlink is trading at approximately $15.3, reflecting a 13% increase over the past week.
Hot Take: Chainlink’s Decreasing Supply on Exchanges Signals Bullish Momentum
The recent drop in Chainlink’s supply on exchanges is an encouraging sign for LINK holders and the cryptocurrency market as a whole. As more investors opt for self-custody by holding their coins in wallets they control, the potential risks associated with centralized entities are reduced. This move towards decentralization promotes stability and resilience within the market, preventing scenarios like the FTX collapse from destabilizing the entire industry. Additionally, lower supply on exchanges suggests investor accumulation and long-term bullish prospects for Chainlink’s price. With LINK experiencing a rebound in price following the supply decline, it’s clear that this trend is a positive development for the cryptocurrency.
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