Journalist
Posted:
- LINK’s circulating supply increased courtesy of the latest token unlock.
- Assessing price impact and latest development which underscores long term potential growth.
The LINK token’s circulating supply just increased by roughly 18.75 million tokens in the last 24 hours from non-circulating supply contracts. But could this development yield an unfavorable outcome for the coin?
Token unlocks usually lead to a higher circulating supply for the underlying asset. This is currently what is happening with the LINK token. Now, there is a notable chance that LINK could experience a significant amount of sell pressure. However, this is not the first token unlock for LINK and previous such occasions did not yield a significant price change.
🚨 18.75M $LINK ($117M) was unlocked from 4 Chainlink: Noncirculating supply contracts 6hrs ago, of which:
– 15.7M $LINK ($98M) was deposited to #Binance
– 3.05M $LINK ($19M) remains in multisig 0xD50fNotably, 82.75M $LINK has been unlocked since Aug 2022, of which 71.8M $LINK… pic.twitter.com/lqooYQKPt9
— Spot On Chain (@spotonchain) September 16, 2023
Of course, there is the possibility that the prevailing bullish momentum observed in the last few days could end up cancelling any incoming sell pressure. Interestingly, LINK’s price action has already tanked by over 2.2% to its $2.14 press time level.
Source: TradingView
There is another reason why the token unlocks might not have much of an impact on LINK’s price action. The recently unlocked tokens represent just 2.82% of Chainlink’s current circulating supply. Nevertheless, the higher circulating supply may still trigger some sell pressure.
Other factors may have a more pronounced impact on price. For example, Chainlink’s supply held by whales recently soared to a new weekly high, indicating that there was a large whale purchase. This may have contributed to the bullish momentum observed in the last few days.
Source: Santiment
On the other hand, Chainlink’s network growth and development just concluded the week at a weekly low. These findings can potentially have a negative impact on LINK’s investor sentiment. It is worth nothing that the same metrics have so far not had much of an impact on LINK’s weighted sentiment which is currently at its weekly high.
Read about Chainlink’s price prediction for 2024
Chainlink’s collaboration with DCCT underscores potential growth
As far as matters related to organic growth are concerned, Chainlink is reportedly on the Depository Trust & Clearing Corporation’s (DCCT) radar. The latter is the largest securities settlement system in the world.
Chainlink’s involvement with DCCT is the latest development involving the protocol that underscores efforts aimed at tapping into the tokenized assets segment. The latter is a segment that is expected to be among the biggest growth segments in WEB3.
.@The_DTCC settles quadrillions of dollars worth of securities transactions annually.#Chainlink CCIP unlocks interoperability for the tokenized asset market.
Discover how Chainlink and DTCC are collaborating in this new blog by Stephen Prosperi: https://t.co/DyqUc0miFH pic.twitter.com/y0uVMFsm35
— Chainlink (@chainlink) September 15, 2023
DCCT is reportedly experimenting with Chainlink in the tokenized asset market. This collaboration has the potential to bring billions of dollars into the Chainlink ecosystem and contribute to its long-term growth.
