A new analysis from Glassnode finds that the top 1% of Chainlink holders own almost 81 percent of the token’s supply.
According to the crypto industry data aggregator Glassnode, the allocation of Chainlink’s (LINK) tokens is at record centralization levels—more than 80 percent of LINK not carried on exchanges currently in the top 1% of Chainlink wallets.
Glassnode’s study finds that 81% of Connect not owned on crypto exchanges of smart contracts is actually stashed in 125 wallets, with the number of tokens held by Chainlink’s whales slowly rising over the last two years.
When including tokens owned on exchanges and in smart contracts that omitted data from Glassnode, the centralization of the delivery of Chainlink tokens seems to be extreme—with Etherscan data showing that only 100 wallets carry 82.7 percent of LINK or less than 0.03 percent of LINK addresses.
However, Glassnode reports that only 12,500 of these addresses are actually online, indicating that almost 83 percent of LINK’s supply is 0.8 percent of active wallets.
Chainlink whales tend to have accelerated their accumulation since July 2019, with the supply share embodied by the top 1% of LINK holders gradually rising from 53% to 81% in the last 18 months.
With whales continuing to buy amid the Connect rocketing towards new all-time highs this month, Glassnode’s Liesl Eichholz concludes that “bullish sentiment” remains heavy among Chainlink’s seasoned traders:
“The continued concentration of supply suggests that, even with the available supply increasing, LINK’s top holders are still bullish on the token, and are continuing to acquire more.”
LINK whales are accumulating amid the fact that Chainlink’s core team seems to be selling a large portion of their private token stash, with Glassnode identifying 52 million LINK that have transferred from Chainlink’s reserve wallets over the past 100 days.
Chainlink established itself as the most commonly used oracle network in 2020 to secure alliances with tech behemoth Google and Ethereum-rival Tezos (XTZ).
On Jan. 18, Chainlink flipped Bitcoin Cash to become the eighth-largest market cap cryptocurrency.
305 Interactions, 2 today