125 Individual LINK Wallets Hold More Than 81% of Chainlink’s Supply: Glassnode Report
A new report suggests that 125 LINK wallets hold 81 percent of the token's supply. LINK whales have accumulated the asset over time and will now be giddy as the asset notches new milestones.
Chainlink's token LINK has been on a considerable rise since the bull market started in December 2020 and is now in a larger public spotlight. New research has uncovered an uneven structure of the asset's supply.
📈 $LINK Percent Balance of Top 1% Addresses just reached a 3-year high of 81.737%
Previous 3-year high of 81.658% was observed on 14 January 2021
— glassnode alerts (@glassnodealerts) January 17, 2021
Glassnode published a report showing that the top one percent of LINK holders own almost 81 percent of the token's entire supply. The report explained that these tokens are held in individual wallets and not on cryptocurrency exchanges or other asset custodians. In total, 125 individual whales held the larger chunk of LINK's supply.
The number of tokens held by whales has also been increasing considerably over the past two years, showing some alarming centralization on the asset's network.
The numbers get even more concerning when including tokens held on smart contracts and exchanges. Data from Ethersan shows that just 100 wallets hold 82.8 percent of LINK tokens, marking less than 0.03 percent of the total number of addresses that hold the asset.
Whales have also been accumulating more of the asset since July 2019 as the data showed, the share of supply that the top one percent of LINK holders had jumped from 53 percent to 81 percent over the past 18 months.
The decision appears to have paid off for these whales, with LINK's price jumping from $2.76 as of July 2019 to $21.5 at press time.
LINK on the Rise
Chainlink has posted impressive numbers of late, enjoying what many believe to be a boom from the decentralized finance (DeFi) space. With DeFi protocols requiring smart contract oracles to ensure real-time data provision, tools like Chainlink have become increasingly important.
Just yesterday, LINK surpassed Bitcoin Cash briefly to become the eighth-largest cryptocurrency in the market. Current marketplace data shows that LINK has an $8.96 billion market cap, while Bitcoin Cash has surged by 10 percent in the past 24 hours to boost its market cap to $9.87 billion.
The market sentiment is that LINK will be able to coast on the healthy DeFi market and surpass Bitcoin Cash. It could even leapfrog Cardano and Litecoin, which currently occupy the seventh and eighth spot, respectively.
Glassnode pointed out as much, noting that there seems to be a strong bullish sentiment among LINK's veteran 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,” said Liesl Eichholz, one of the company's top researchers.