Chainlink’s price surge in the past week has caught the attention of many investors, but it seems to be experiencing a bit of a slowdown. The reason behind this stall in price may lie in a recent on-chain revelation. SpotOnChain, a crypto analytics firm, revealed that a total of 19 million Chainlink tokens, worth about $341 million, were recently unlocked from three of Chainlink’s non-circulating supply contracts.
Out of the 19 million tokens, 15.95 million were transferred to Binance, the world’s largest centralized exchange, while the remaining 3.05 million were sent to a multi-sig wallet. SpotOnChain also disclosed that this is not the first time such transactions involving Chainlink’s wallets have occurred. Since August 2022, Chainlink has unlocked a total of 106 million tokens, with 88.95 million LINK sent to Binance. These transactions have had an average value of $9.06, totaling $805 million.
Interestingly, SpotOnChain noted that the last two unlocks were followed by a slight dip in LINK’s price. The most recent unlock caused the token to drop from almost $19 to $17.5 on Saturday, February 3. However, the price has since experienced a 1.5% jump, currently valued at $17.86.
Despite this temporary price dip, Chainlink’s network activity has been on the rise. Ali Martinez reported a surge in transaction volume, reaching its highest level in almost two years. On Friday, February 4, more than 72.24 million LINK tokens, equivalent to $1.3 billion, were transacted. This increase in network activity may signal a positive outlook for Chainlink’s future performance.
While the recent unlocking and transferring of tokens may have caused a momentary pause in Chainlink’s price growth, the altcoin’s strong network fundamentals and robust transaction volume could be indicators of a potential bullish run in the near future. Investors should conduct their own research and due diligence before making any investment decisions, as the cryptocurrency market can be highly volatile and carries inherent risks.