Does the ongoing decline in Chainlink exchange supply, reaching a four-year low, suggest a sustained rally ahead?


The Chainlink (LINK) cryptocurrency has recently experienced a significant drop in its supply on exchanges, reaching the lowest level in nearly four years. This on-chain data, provided by Santiment, raises questions about the potential implications for LINK’s price movement. In this blog post, we will explore the recent developments in Chainlink’s supply on exchanges and analyze the potential impact on its market dynamics.

Chainlink Supply On Exchanges: A Deep Dive

According to Santiment’s on-chain analytics, the supply of Chainlink on exchanges has witnessed a substantial decrease. The term “supply on exchanges” refers to the proportion of the total circulating Chainlink supply currently held in centralized exchange wallets. When this metric declines, it indicates that investors are withdrawing a net amount of coins from these platforms.

Bullish Signals

The recent decline in the supply on exchanges for Chainlink suggests a positive trend for the cryptocurrency. A decrease in this metric implies that investors are accumulating LINK, potentially signaling a bullish sentiment for the long-term price outlook. In contrast, an increase in supply on exchanges could indicate a bearish trend, as investors may be depositing coins for selling purposes.

Historical Perspective

Examining a chart showcasing the Chainlink supply on exchanges over the last few years reveals a sharp decline in recent weeks. The metric has reached a mere 14.87%, the lowest since February 5th, 2020, marking a four-year low. This significant drop in supply coincides with a rebound in LINK’s price following a dip below the $13 level.

Implications for Chainlink

The decline in supply on exchanges is not only optimistic for current LINK investors but also carries broader implications. The reduction in the portion of LINK held on exchanges suggests a move towards self-custody, a positive development for any cryptocurrency. Self-custody minimizes the impact of centralized entities on the market, reducing the likelihood of market destabilization events seen in the past.

Price Movement

As of the latest data, Chainlink is trading at around $15.3, reflecting a 13% increase in the past week. The recent surge in LINK’s price aligns with the decline in supply on exchanges, indicating a potential correlation between the two.


In conclusion, the recent plunge in Chainlink’s supply on exchanges to a four-year low is a noteworthy development. While it’s challenging to definitively attribute the recent price movement to this decline, the correlation suggests a positive outlook for LINK. As the cryptocurrency sector continues to evolve, movements towards self-custody are likely to play a crucial role in ensuring market stability and resilience.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Readers should conduct their own research and consult with financial advisors before making investment decisions.

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