By Brenda Collins
The cryptocurrency community has noticed Chainlink’s (LINK) decision to release 21 million tokens into circulation. This is part of Chainlink’s larger plan to improve network performance, compensate node operators, and finance led to the issuance of 21 million LINK tokens.
However, the organization in charge of the project, Chainlink Labs, claims that this scheduled release aims to guarantee long-term growth and sustainability of the token in the larger cryptocurrency market. Over the following few months, the tokens will be distributed in stages.
This gradual strategy seeks to stretch out the supply increase to lessen the immediate impact on the market. Chainlink is setting itself up for long-term growth by providing development financing and incentives to node operators. Sarah also said that investors want to consider long-term possibilities instead of concentrating on temporary price fluctuations.
Chainlink Release Plan For Additional Token, Increase in Supply Eminent
The remaining tokens will be set aside for strategic alliances and ecosystem expansion, with the remaining portion going toward funding additional development and research. Price pressure may result from an increase in supply, mainly if demand is not keeping up with the influx of new tokens into the market.
According to historical data, significant price movements may result from substantial token releases. Speaking on the development, a cryptocurrency analyst, Sarah Jacobs, stated, “This token release is a strategic move by Chainlink to strengthen its network and expand its market capabilities.”
Also read:The transferred tokens were traced to Binance, while 2.25 million LINK units worth $31.30 million were moved to multiple wallet addresses. This signifies a future delay in the anticipated sales. As of press time, LINK trades at $13.61, a 1.37% drop in the last 24 hours, and could be caused by the recent colossal token transfer. Industry experts are still determining if the price of LINK will continue downward.
Current Change Likely to Cause Temporary Price Volatility
Long-term demand for LINK can be increased by strategic alliances and ecosystem development initiatives supported by token distribution, which can draw in new users and applications. The speed of transactions on the Chainlink network has been described as an important indicator of a considerable increase in token movement.
If the speed slows down, it signifies congestion in the network, leading to an increase in price because of a reduction in market supply. Data from Glassnode shows that the LINK network’s speed has increased after June 20. The data suggested that increased user activity and coin circulation could be the cause.
Mark Henderson, a financial consultant, suggests that investors be cautious. They add that any significant rise in the number of tokens available may cause volatility. However, there have been some movements in most cryptocurrency exchanges, as indicators are projecting upcoming massive sales due to increased market anxiety.
Over 12,000 Addresses Hold 5.84 LINK, Targets $14 Price Mark
The data from Glassnode also suggested that the price of LINK will experience an increased price fluctuation should this continue. It also predicted that a drop to $13 is possible, as remarked by market metrics by IOMAP, a market insight service company.
Chainlink investors are advised to pay close attention to the network’s speed, which is believed to translate to circulation trends and proposed price movements. Another data source from IntoTheBlock shows major price resistance that supports Chainlink investors’ threshold.
Over 12000 wallet addresses bought 5.84 million units of LINK at $13.40 and are presently receiving profits. There are currently 14,140 wallet addresses that bought 11.62 million tokens at $13.90 and are currently recording a loss.
This is part of Chainlink’s efforts to break away from the $13 price mark to target $14. There’s a growing possibility that the coin may drop further to $12.95, considering the ongoing losses experienced by past investors. Meanwhile, this trend may continue after hitting $13.90, thereby exposing potential complexity and volatility in the price of LINK.
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