Exchange balances of Chainlink’s native token LINK have continued to shrink, extending a withdrawal trend that began in mid-2023.
With unrealized profits and derivatives interest both at elevated levels, the market is weighing whether reduced sell-side liquidity will spark a sustained rally — or if profit-taking could cap gains.
Exchange Reserves Drying Up
Data from CryptoQuant shows that LINK held on centralized exchanges has dropped to about 161.8 million tokens.
Data from CryptoQuant shows that LINK held on centralized exchanges has dropped to about 161.8 million tokens.
That downtrend started around mid-2023, when LINK traded roughly between $6 and $7. Reduced exchange inventories lessen the immediate supply available for selling, which can lower downside pressure and make price moves sharper if demand ramps up.
Since that mid-2023 range, LINK has climbed dramatically — up more than 230% from those levels — and the shrinking exchange float is often cited as a bullish structural factor during past crypto bull phases.
Profits Near Peak Levels
On-chain analytics from Glassnode indicate a large share of the circulating supply is currently in profit.
The Percent Supply in Profit metric sits near 90%, a level that also coincided with the token’s July rally. While a high proportion of holders showing unrealized gains can fuel momentum, it also means there is a sizable pool of investors who could sell to realize profits if sentiment shifts.
So far, profit-taking hasn’t derailed LINK’s advance: distribution has remained measured and the token has maintained upward momentum rather than experiencing a large reversal.
Open Interest Surges
Derivatives activity has accelerated sharply as well.
Derivatives activity has accelerated sharply as well.
Open Interest (OI) — the total value of active long and short positions — was roughly $115 million on September 1, 2024. According to current Messari data, OI has since expanded to more than $1.2 billion, reflecting a substantial influx of leveraged exposure from both retail and institutional participants.
This influx aligns with broader adoption trends: Chainlink’s oracle services have secured partnerships across Web2 and Web3, strengthening its role in DeFi and attracting investor attention.
Price Snapshot
CoinMarketCap lists LINK trading around $23. That price point represents a roughly 48% gain over the prior month and about a 118% increase year-to-date, with only a negligible daily decline at the time of reporting. Outlook
The combination of falling exchange reserves and booming open interest creates a setup where a relatively modest uptick in buying could lead to outsized price moves due to thinner liquidity.
Conversely, the high share of supply sitting in profit introduces the risk of increased selling if traders choose to take gains en masse.
For now, market structure and on-chain data suggest a bullish bias, but investors should watch volume, funding rates, and realized selling pressure for signs of a shift.
