The cryptocurrency market has witnessed a significant event as Chainlink (LINK), a decentralized oracle network, unlocked 21 million non-circulating tokens on June 21. This move has sent ripples through the market as these tokens, valued at nearly $300 million, were primed for sell-off. A report from SpotOnChain revealed that a staggering 18.75 million of these unlocked tokens were transferred to a Binance deposit address. This action indicates a clear intention to sell about 88% of the newly available supply immediately, worth approximately $265 million.
This is not an isolated incidence, as Chainlink has been systematically unlocking and liquidating significant portions of its token supply since August 2022. To date, there have been a total of 127 million LINK tokens unlocked, with 107.7 million of these being deposited with Binance over the past two years. These sales have contributed to a 26.4% increase in the circulating supply of LINK due to inflation from these events. Chainlink’s selling occurrences have involved amounts ranging between 6.1 million to the massive 18.75 million LINK tokens observed most recently.
The influx of tokens into the market has not halted the LINK’s impressive growth over the past year. At the time of reporting, Chainlink was trading at $13.78, showcasing an exceptional 127.6% gain year-over-year. This marks a significant increase from the exchange rate of $6 per token witnessed in June 2023.
Furthermore, the vesting contract allocated 2.25 million LINK to a multisig wallet already holding over 6 million LINK. There remains a colossal total of 391.5 million LINK that is non-circulating, which based on current valuations, is worth around $5.4 billion.
Chainlink’s Oracle technology plays a vital role in the tokenization of real-world assets, which has grabbed the attention of traditional finance behemoths such as BlackRock and Franklin Templeton. Their involvement is a testament to the trend of real-world asset tokenization that is gaining traction. This trend suggests not only potential growth but also hints at substantial institutional capital inflows into the broader cryptocurrency market.
Despite the immediate impact of the large-scale sale, the Chainlink network’s ability to attract big traditional finance players bodes well for its long-term prospects. As the crypto-asset market continues to mature, the link between real-world assets and blockchain technology becomes ever more critical, potentially paving the way for a new era of growth and integration in the financial world.
