On June 20, Chainlink completed a new round of quarterly token unlocking. On-chain data shows that 21 million LINK tokens were transferred from non-circulating supply addresses, worth approximately $166 million according to the article's calculations. Most of these tokens subsequently entered Binance, sparking discussions in the market about short-term selling pressure on LINK.
18.375 million LINK tokens transferred to Binance
According to Arkham data, after the unlocking was completed, approximately 18.375 million LINK tokens were transferred to Binance, worth approximately $144.93 million. The remaining approximately 2.62 million LINK tokens were transferred to a multisignature wallet, amounting to approximately $20 million.
The report mentions that such unlocks are usually part of the project's established token distribution arrangements, and the relevant tokens may be used to supplement market liquidity, support project operations, or be used for node operator rewards and staking incentives.
The remaining tokens flow to staking rewards
The article states that a portion of the funds transferred to the multisignature wallet was primarily used to distribute rewards to LINK staking participants. The report also points out that this batch of tokens does not equate to new issuance, nor does it indicate that they have been directly sold; however, the large transfer itself still raises market concerns.
According to CryptoQuant data, LINK saw a net inflow of 10.3 million tokens into exchanges at one point. Typically, a larger inflow of tokens into exchanges is interpreted by the market as a potential increase in selling pressure.
Prices remain in a downward trend
As of press time, LINK was trading at $7.90, up about 1.4% on the day, but still in a downward trend overall. The article noted that since the previous rally ended near $8.50, LINK has continued to hit lower lows, reaching a low of $7.70.
The report also stated that in addition to the overall weakness in the crypto market, spot demand for LINK has not shown significant improvement. Citing Sosovalue data, the article noted that net inflows into LINK spot trading have been zero for nine consecutive days, indicating weak institutional interest.
In summary, the core message of this report is not that the unlock itself caused a clear sell-off, but rather that the large inflows into exchanges coupled with weak demand have made the market cautious about the future trend of LINK.
