According to Glassnode, Chainlink’s LINK distribution is at a record level of concentration with more than 80% of the LINK not held on exchanges currently in the top 1% of Chainlink wallets. Thus, Chainlink holdings of the top 1% LINK addresses have hit a 3 year high.
📈 $LINK Percent Balance of Top 1% Addresses just reached a 3-year high of 81.737%
Previous 3-year high of 81.658% was observed on 14 January 2021
— glassnode alerts (@glassnodealerts) January 17, 2021
Glassnode: Chainlink holdings of the top 1% LINK addresses have hit a 3 year high
According to Glassnode, 81% of the LINK’s not held on smart contracts’ exchanges is currently held in 125 wallets, with the number of tokens held by Chainlink whales increasing steadily over the past two years. These addresses now hold 81,737% of the total supply.
According to Etherscan, 82.7% of LINK is held by just 100 wallets, or less than 0.03% of LINK holds. However, Glassnode estimates that only 12,500 of these are currently active, suggesting that nearly 83% of LINK’s supply is within 0.8% of active wallets.
Chainlink whales appear to have accelerated their accumulation since July 2019, with the share of supply represented by the top 1% of LINK holders steadily increasing from 53% to 81% over 18 months.
With whales continuing to buy despite LINK once again skyrocketing to new all-time highs this month, Glassnode’s Liesl Eichholz concludes the bullish sentiment remains strong among Chainlink traders.
“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.”
Summing it up, the top 1% Chainlink addresses are accumulating LINK in a manner that hints that they are confident regarding the long term value of the token. From a technical analysis point of view, Chainlink has just set an all-time high with the majority of its daily indicators in overbought territory.
However, FOMO might have already kicked in and Chainlink could very well be on a path towards higher levels as witnessed in July of last year. In terms of support zones on a macro level, $20, $16 and $12 provide areas of interest should there be a quick correction by Chainlink.