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Will Chainlink face sell pressure after massive token unlock

2min Read

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.

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  • 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?


Is your portfolio green? Check out the LINK Profit Calculator

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.

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.

LINK price action

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.

Chainlink network growth, supply held by top addresses and development activity

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.

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.

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Michael is a full-time journalist at AMBCrypto. He has 5 years of experience in finance and forex and more than two years as a writer in the crypto and blockchain segments. Michael's writing at AMBCrypto is primarily focused on cryptocurrency market news and technical analysis. His interests include motorcycles and exotic cars.
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