Chainlink’s (LINK) token distribution is at record levels of centralization, according to crypto market data aggregator Glassnode, with more than 80 percent of LINK not carried on exchanges actually residing in the top 1 percent of Chainlink wallets.
Analysis by Glassnode showed that 81 percent of LINK not held on smart contract crypto exchanges is currently stashed away in 125 wallets, with the number of tokens kept by Chainlink whales growing gradually over the past two years.
The centralization of Chainlink’s token allocation becomes drastic by including the tokens held on exchanges and in smart contracts that Glassnode’s data omitted, with Etherscan data showing that only 100 wallets hold 82.7 percent of LINK, or less 0.03 percent of LINK-holding addresses.
Glassnode, however, reports that only 12,500 of these addresses are actually available, indicating that 0.8 percent of active wallets account for almost 83 percent of LINK’s availability.
As reported by cointelegraph.com, since July 2019, Chainlink’s whales tend to have increased their accumulation, with the supply proportion represented by the top 1 percent of LINK holders gradually rising from 53 percent over the past 18 months to 81 percent.
With whales continuing to buy despite LINK rocketing towards new all-time highs again this month, Liesl Eichholz of Glassnode concludes that “bullish sentiment” remains strong among veteran traders of Chainlink: “The continued concentration of supply suggests that, even with the available supply increasing, LINK’s top holders are still bullish on the token, and are continuing to acquire more.”
Despite Chainlink’s core team appearing to sell a large percentage of their private stash of tokens, LINK whales are accumulating, with Glassnode identifying 52 million LINKs that have passed over the past 100 days from Chainlink’s team’s reserve wallets.