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Why Chainlink’s exchange inflow and outflow is no stop sign

2min Read

After months of bullish predictions, LINK is finally succumbing to the demand of those who accumulated when it dropped below $6. What’s the next target?

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  • LINK’s price may continue to increase irrespective of the rising exchange supply.
  • Activity on the Chainlink network has been impressive, leading traders to hold bullish positions.

In the last 30 days, Chainlink’s [LINK] value has gained over 20%, bringing to life the predictions that the token was ready for an upward movement. As a result, LINK has become one of the best-performing assets as AMBCrypto reported earlier.


Read Chainlink’s [LINK] Price Prediction 2023-2024


LINK: Not your everyday crypto

However, there is something that makes Chainlink stand out from the rest, and Santiment, in its 25 September post on X (formerly Twitter) highlighted it.

According to Santiment, the same way LINK has experienced in surge in exchange inflows is the same way the supply to non-exchange wallets has improved.

But unlike the rest of the market, the increase in exchange inflow did not have a negative impact on the LINK price. The on-chain analytic platform also mentioned that it was like an “occasional tradition” for LINK to ignore this fundamental expectation.

As of 24 September, LINK’s supply on exchanges jumped to 17.22%. Although it decreased at press time, the aftereffect of the increase was not a price slump. For the supply outside of exchanges, Santiment showed that it increased to 836.44 million.

This metric tracks each of the token’s supply being hoarded by market participants. So, the increase means that addresses not associated with any exchange are rising. Consequently, the chances of a potential sell-off are low.

Bulls have the edge 

On the derivative side, Santiment revealed that Chainlink traders are bullish on price action. This was because the funding rate at the time of writing was 0.008%. Funding rates provide valuable insight into market dynamics and trader sentiment.

A high funding rate suggests a high interest in long-leverage trades. This indicates a bullish sentiment. On the other hand, a negative funding rate means the traders are bearish on the price action. In this instance, shorts pay longs a funding fee to keep their contracts open.

Chainlink supply on exchanges and LINK funding rate

Source: Santiment

But LINK’s alliance was with the former. Therefore, there’s a chance that the token could build on its month-long increase. 

Additionally, Chainlink has experienced an increase in active addresses. At the time of writing, LINK’s seven-day active addresses had climbed to 16,300. Active addresses show the number of unique addresses involved in LINK transactions daily.


Realistic or not, here’s LINK’s market cap in BTC terms


When the metric decreases, it means that crowd interaction or speculation around the token has decreased. Conversely, an increase in the active addresses suggests a hike in participation or speculation around the token.

LINK price and Chainlink active addresses

Source: Santiment

Therefore, if LINK’s active addresses continue to increase, then it’s possible to see the price approach $8 or beyond.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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