According to the Crypto Market Data Aggregator Glassnode, Chainlink’s (LINK) token distribution is at a record level of centralization. More than 80% of LINK are not held on exchanges that are currently in the top 1% of Chainlink wallets.
Research by Glassnode found that 81% of LINKs not held on smart contract crypto exchanges are currently held in 125 wallets. The number of tokens held by Chainlink whales has steadily increased over the past two years.
When the tokens held on exchanges and in smart contracts that have been excluded from Glassnode’s data are included, Chainlink’s centralization of token distribution appears extreme – with Etherscan data indicating 82.7% of LINK’s out of just 100 Wallets or less than 0.03% of LINK addresses are held.
However, Glassnode estimates that only 12,500 of these addresses are currently active, which suggests that nearly 83% of LINK offerings are in 0.8% of active wallets.
Chainlink’s whales appear to have accelerated their accumulation since July 2019, with the proportion of supply represented by the top 1% of LINK owners rising steadily from 53% to 81% over the past 18 months.
With whales continuing to buy even though LINK hit new all-time highs again this month, Glassnode’s Liesl Eichholz concludes that the “bullish sentiment” among seasoned Chainlink traders remains strong:
“The continued concentration of supply suggests that despite the increasing supply available, LINK’s top owners are still optimistic and continue to buy more.”
LINK whales are piling up despite the fact that Chainlink’s core team is apparently selling a significant portion of their private token supply. Glassnode identifies 52 million LINKs that have been removed from the Chainlink team’s reserve wallets in the last 100 days.
Chainlink established itself as the most widespread oracle network in 2020, securing partnerships with technology giant Google and Ethereum rival Tezos (XTZ).
On January 18, Chainlink flipped Bitcoin Cash and became the eighth largest cryptocurrency by market capitalization.