Chainlink has just unlocked 21 million LINK tokens, valued at $295 million, from its non-circulating supply contracts. These tokens were mainly transferred to Binance, which has raised concerns among investors regarding a potential decrease in price.
Spot On Chain has stated that this increase in volume could exacerbate Chainlink’s ongoing price fall. Following the unlocking process, a total of 18.25 million LINK tokens, with a market value of $265 million, were transferred to Binance.
Additionally, another 2.25 million LINK tokens, valued at $31.3 million, were transmitted to a multisig wallet. Chainlink follows a token unlock plan that gradually releases around 7% of the entire supply each year. As of August 2022, a total of 127 million LINK tokens have been unlocked.
Notwithstanding these notable fluctuations, the price has predominantly maintained a steady state. Nevertheless, the present market conditions are distinct, as LINK is currently trading in close proximity to a critical support level of $13.5.
If the value decreases to a level lower than this, it has the potential to decline to $10, which could potentially initiate additional instances of selling off assets.
There remains a total of 391.5 million LINK tokens, valued at $5.4 billion, that are yet to be unlocked. The timing of future releases will play a vital role in deciding the price of LINK.
