In line with crypto market information aggregator Glassnode, Chainlink’s (LINK) token distribution is at document ranges of centralization — with greater than 80% of LINK not held on exchanges presently residing within the prime 1% of Chainlink wallets.
Glassnode’s analysis discovered that 81% of LINK not held on crypto exchanges of sensible contracts is presently stashed away in 125 wallets, with the variety of tokens held by Chainlink’s whales steadily growing over the previous two years.
When together with the tokens held on exchanges and in sensible contracts that Glassnode’s information excluded, the centralization of Chainlink’s token distribution seems excessive — with Etherscan information indicating that 82.7% of LINK is held by simply 100 wallets, or much less 0.03% of LINK-holding addresses.
Nonetheless, Glassnode estimates that solely 12,500 of those addresses are presently lively, suggesting almost 83% of LINK’s provide resides in 0.8% of lively wallets.
Chainlink’s whales seem to have accelerated their accumulation since July 2019, with the share of provide represented by the highest 1% of LINK holders steadily growing from 53% to 81% over the previous 18 months.
With whales persevering with to purchase regardless of LINK once more rocketing into new all-time highs this month, Glassnode’s Liesl Eichholz concludes “bullish sentiment” stays sturdy amongst Chainlink’s veteran merchants:
“The continued focus of provide means that, even with the obtainable provide growing, LINK’s prime holders are nonetheless bullish on the token, and are persevering with to amass extra.”
LINK whales are accumulating regardless of Chainlink’s core group showing to promote a big share of their non-public stash of tokens, with Glassnode figuring out 52 million LINK which have moved from the reserve wallets of Chainlink’s group over the previous 100 days.
Chainlink established itself as essentially the most extensively used oracle community in 2020, securing partnerships with tech behemoth Google and Ethereum-rival Tezos (XTZ).
On Jan. 18, Chainlink flipped Bitcoin Money to change into the eighth-largest cryptocurrency by market cap.