Chainlink Supply on Exchanges Hits Four-Year Low, Boosting LINK Price
Chainlink (LINK), the native token of the Chainlink network, has seen a surge in price over the weekend, reaching $15.82 for the first time in two weeks. The price increase coincided with a drop in the supply of LINK on exchanges, which reached its lowest level in nearly four years.
According to data from blockchain analytics firm Santiment, the latest price rally of LINK occurred as the supply on exchanges declined to a low level. This indicator suggests that there is a net outflow of tokens from the trading platforms, which could signal that investors are accumulating and holding the tokens, expecting a further price appreciation in the long term.
The value of the indicator reached 14.87%, the lowest figure since February 5, 2020, almost four years ago.
Regardless of the reasons behind the decrease in supply on exchanges, the indicator is certainly a bullish sign for Chainlink, as it implies a lower selling pressure and a higher demand for the token.
Chainlink is one of the leading projects in the decentralized oracle space, enabling smart contracts to securely access off-chain data feeds, events, and payment methods. Chainlink has partnered with many prominent platforms and projects in the blockchain industry, such as Google Cloud, Oracle, Polkadot, Aave, and Synthetix.
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