The LINK marines are pushing all time highs again as whales hoard token supply and LINK balances on exchanges keep dwindling.
Per data from Glassnode, the top 1% of LINK addresses have continued to accumulate the token all throughout 2020 and into 2021.
At the time of publishing, the top 1% of addresses have acquired 82% of the total LINK supply, showing that big players are seemingly uninterested in distributing tokens en masse.
This creates a double edged sword which plays to both the strengths and weaknesses of a more centralized token economy. As with other projects that have effectively unloaded high amounts of supply on surging retail interest, the possible drawbacks could be catastrophic for both the price and the protocol. Such a scenario is at the discretion of developers, early adopters and high net worth entities in the Chainlink ecosystem.
The question is: can the LINK marines escape the fate of the XRP army, or is this project doomed to repeat history?
Either way, if and when market behaviour changes, we’ll know about it.
Balance on Exchanges
Meanwhile, the token balance on exchanges continues to dwindle (60 million tokens), revealing that ‘holding activity’ is still a strong trend.
If bitcoin behaviour is the ‘model’ to emulate, then a plateau and subsequent increase in this metric would mean that selling interest has re-entered the market.
No Upper Bound
In 2020, LINK reached an all time high of $20 before profit-taking accelerated . After five months of distribution and accumulation, the token broke through its all time high again, reaching $25 and climbing.
With this backdrop, the LINK marines have embraced price-discovery with no upper bound. The last time LINK broke all time highs the token surged 300% in 40 days.
Disclaimer: Chris on Crypto is an investor in Chainlink