Chainlink serves as the foremost middleware, securely connecting on-chain dapps with external data. The platform plays a crucial role in various sectors of the cryptocurrency market, particularly in DeFi. However, LINK has recently faced challenges in gaining momentum.
LINK Holders Transferring Tokens From Exchanges: Are They Accumulating?
Nonetheless, on-chain data from IntoTheBlock indicates that an increasing number of holders are transferring tokens from prominent exchanges such as Binance and Coinbase. In a post on X, the analytics platform noted that the exchange flow has been negative over the past month, signifying ongoing withdrawals.
Typically, when tokens are withdrawn from exchanges, it may suggest that owners are optimistic about future developments. Given that LINK, the ERC-20 token, is backed by a variety of DeFi protocols, this trend could imply that holders are eager to interact with these dapps, potentially earning passive income.
The increase in transfers from centralized platforms raises the probability of a corresponding price increase, which would be beneficial for LINK bulls. According to Etherscan, Chainlink boasts a total supply of 1 billion LINK distributed among 721,996 unique addresses as of October 23.
These holders have collectively moved LINK over 15.8 million times. Further analysis reveals that Binance holds more than 4.2% of the total supply, with the LINK under their control exceeding $479 million at current market rates.
Chainlink Developments: Will Price Surpass $20?
With IntoTheBlock’s data showing net outflows from exchanges, LINK may find support and continue the upward trend observed in recent trading days. LINK faces resistance at $12.3, and a double-bar bear formation is emerging following today’s earlier dip.
However, even if prices rise, overcoming bearish pressure, bulls need to consistently break above the double top around $13. This eventual surge could pave the way for LINK bulls to establish a robust foundation for a rally towards $20.
The speed of this growth will largely depend on the performance of leading altcoins, including Ethereum. If Ethereum’s price rebounds, climbing above $3,000, it could rejuvenate interest in DeFi and NFTs, positively impacting LINK.
Moreover, price dynamics will also be influenced by the team’s ongoing advancements. On October 22, Chainlink Labs unveiled the Cross-Chain Interoperability Protocol (CCIP) for Private Transactions. This feature allows for data privacy without contravening existing regulations regarding cross-chain transactions.
This solution utilizes the middleware’s Blockchain Privacy Manager, enabling partner banks and other financial institutions to securely connect private chains with various ledgers when sharing sensitive information.
