The cryptocurrency industry is subject to a lot of interesting statistics. Most of these events often go by undocumented. ChainLink, a project built on top of Ethereum, notes a steep decrease regarding LINK balances across exchanges.
Those are the findings provided by Glassnode Studio. It marks a crucial trend for this project that seems to coincide with its recent price increase.
ChainLink Exchange Balances Dwindle
A lot of cryptocurrency users store their funds on an exchange. This is often done out of convenience, or to trade certain assets. Giving up control of one’s crypto assets out of convenience is not the best idea.
In the case of ChainLink, things are changing. Data provided by Glassnode Studios confirms that there is fewer LINK in exchange’s wallets. A very interesting development for many different reasons.
When looking at the “distribution chart”, over 125 million LINK sat in exchange wallets in late December 2017. Not a surprising development at that time. Over time, however, this total began to dwindle. This is either because more people move funds off an exchange or due to trading fees charged by the platform in question. A combination of both aspects seems to be the most plausible explanation.
The real drop-off becomes apparent since mid-2019. Just under 121 million LINK was held in exchange wallets at that time. Fast forward to today, and the number sits at 86.46 million. That is still a large amount, yet a near 31% reduction over the span of a few months.
LINK Price Turns Bullish
There appears to be some correlation between this trend and the ChainLink price. As fewer funds is located on exchanges, the LINK value seems to be rising. A cross-over between exchange supply and price occurred in late June 2019. Within weeks, the ChainLink price noted an all-time high.
As the LINK balances on exchanges continue to dwindle, the price has turned bullish again. One would expect more holders to cash out when the value increases. That does not appear to be the case for LINK at this time. It will be interesting to see how these metrics evolve in the months to come.