According to the Crypto Market Data Aggregator Glassnode, Chainlink’s (LINK) token distribution is at a record level of centralization. More than 80% of LINK are not held on exchanges, which are currently in the top 1% of Chainlink wallets.
Research by Glassnode found that 81% of LINK not held on smart contract crypto exchanges are currently held in 125 wallets, with the number of tokens held by Chainlink whales steadily increasing over the past two years.
When the tokens held on exchanges and in smart contracts that have been excluded from Glassnode’s data are included, Chainlink’s centralization of token distribution appears extreme – with Etherscan data indicating 82.7% of LINK’s out of just 100 Wallets or less than 0.03% of LINK addresses are held.
However, Glassnode estimates that only 12,500 of these addresses are currently active, which suggests that nearly 83% of LINK offerings are in 0.8% of active wallets.
Chainlink’s whales appear to have accelerated their accumulation since July 2019, with the proportion of supply represented by the top 1% of LINK owners increasing steadily from 53% to 81% over the past 18 months.
Glasswodes Liesl Eichholz comes to the conclusion that the “whales” among the experienced chainlink dealers are still strong:
“The continued concentration of supply suggests that despite the increasing supply available, LINK’s top owners are still optimistic and continue to buy more.”
LINK whales are piling up despite the fact that Chainlink’s core team is apparently selling a significant portion of their private token supply. Glassnode identifies 52 million LINKs that have been removed from the Chainlink team’s reserve wallets in the last 100 days.
Chainlink established itself as the most widespread oracle network in 2020, securing partnerships with technology giant Google and Ethereum rival Tezos (XTZ).
On January 18, Chainlink flipped Bitcoin Cash and became the eighth largest cryptocurrency by market capitalization.