Why Chainlink Unlock on Binance Can Trigger LINK Price Rally Soon?

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As a seasoned crypto investor with a knack for spotting trends and patterns, I find myself intrigued by the recent unlocking of LINK tokens by Chainlink on Binance. Historically, these unlocks have been followed by significant price rallies, and given the track record, I’m optimistic about the potential for LINK to stage a comeback.

chainlink’s service provider, Chainlink, released LINK tokens on Binance today, as planned. This addition to the market supply might suggest a potential significant surge in LINK prices if past trends continue.

Chainlink Unlocks 18.125 Million Native Tokens

According to the current release schedule, Chainlink has freed up approximately 18.125 million LINK coins and transferred them to Binance, a popular cryptocurrency exchange. This latest unlocking action released a total of 18.75 million LINK tokens, valued at around $215 million. An additional 625,000 LINK tokens, equivalent to roughly $7.18 million, were sent to a multi-signature (multisig) wallet instead.

Since August 2022, over the past two years, I’ve consistently seen Chainlink unleash a staggering $1.5 billion in LINK tokens monthly, with approximately 126 million LINK coins deposited onto Binance at an average price of about $10.13 per token.

Remarkably, it’s been observed that the value of LINK tends to increase within a month following each LINK token release. This pattern holds true for seven out of the last eight such events.

Today, a further 18.125 million LINK tokens (worth approximately $207.4 million) from the non-circulating supply of Chainlink were released and transferred to Binance.
Previously, Chainlink’s unlock events have occurred a total of 8 times. In seven out of these eight instances, the price of Chainlink increased within thirty days following the unlock event.
Will this unlock also bring an increase?…
— Lookonchain (@lookonchain) September 21, 2024

Although large amounts of Chainlink’s $LINK tokens have been transferred to centralized exchanges and deposited, a total of 372.75 million $LINK tokens remain locked in 24 non-circulating supply agreements.

LINK Price Rally Ahead?

The LINK price movement has been a bit laggard recently with flat returns over the past month. After the Chainlink price touched a high of over $20.00 this year in March, the LINK price has moved sideways and corrected more than 50% since then. Currently, the Chainlink price is trading at $11.35 with a market cap of $7.114 billion.

If history repeats and LINK gears up for another rally, it could potentially surge to reach a completely new peak level, given its past performance. However, according to the latest findings, the LINK market seems to be experiencing a stalemate, with no clear direction of movement, indicating uncertainty among traders.

In terms of partnerships on its development path, Oracle has established crucial alliances such as integrating the Cross-Chain Interoperability Protocol (CCIP) from Ethereum‘s layer-2 scaling solution, Metis.

As stated by Metis, this partnership is designed to increase the assortment of decentralized applications (dApps) that developers can build on their platform. This expansion will also facilitate distinctive chances for cross-chain interaction.

Engaging Chainlink’s Cross-Chain Interoperability Protocol (CCIP) now opens up a variety of novel applications for developers working on the Metis platform to investigate and experiment with.

From cross-chain payments to multi-chain DEXs, there’s something for everyone.

— Metis (@MetisL2) September 20, 2024

Two weeks ago, Sonic Labs added the Chainlink CCIP feature to boost the capabilities of decentralized apps (dApps) within their system.

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2024-09-21 12:32