In the cryptocurrency industry, there are always some interesting trends and statistics. Looking at the balances of LINK on exchanges, the ongoing exodus continues unabated. A remarkable development, considering how Chainlink saw a big dip not that long ago.
LINK on Exchanges is Still Going Down
The decrease in Chainlink balances on centralized trading platforms became apparent a while ago. While there is nothing unusual about that, the trend still continues today. So much even that it has roughly halved since February of 2020. If this trend keeps up, even fewer LINK on exchanges will remain, which may have an interesting impact on the overall price.
Earlier today, a new all-time low for LINK on exchanges was recorded. Not entirely surprising, given how this trend has evolved recently. However, it almost seemed as if a reversal would occur a few weeks back. There were more Chainlink tokens on trading platforms than before for the first time a while. However, it appears things have continued to “improve”, as fewer LINK are found today.
Considering how the value of LINK has risen sharply again recently, one would expect there to be more LINK on exchanges. Whenever an asset rises in value, it tends to see an influx of deposits as users will try to maximize their profits. So far, that has not been the case yet, but things can always change in the future. For the time being, this will seemingly remain as they are.
What all of this means for Chainlink as a project, remains to be seen, The project has a circulating supply of over 391.5 million LINK. With just over 20% of those to be found on exchanges, an interesting situation is created. It makes one wonder where the remainder of the supply is to be found these days. Smart contracts and DeFi will undoubtedly have something to do with it.
Number of Transfers Keeps Rising
Even though the amount of LINK on exchanges is decreasing, the network looks very healthy. More specifically, the number of transactions on the network looks healthy. As does the total token transfer volume, which is always a crucial part of any network’s health. Although there has been a recent low in this metric, things are starting to improve once again.
All in all, Chainlink appears to be in a good place right now. The metrics all look healthy, which is all one can ask for. With the LINK price rebounding despite Bitcoin’s bullish surge, most speculators will be rather pleased as well. If the amount of LINK on exchanges keeps dropping, there may be some further changes in the price department as well.
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