Chainlink’s LINK experiences negative exchange net flows for a month, indicating signs of accumulation

LINK has experienced consistent negative netflows on exchanges in the past month. The trend signifies the asset is being accumulated as investors transfer the crypto asset from exchanges to self-custody wallets. ChainLink has also unveiled a CCIP Private Transactions protocol for institutional use cases.

On-chain data shows LINK investors are accumulating the asset following consistent withdrawals from centralized exchanges. The progressive withdrawals were identified by IntoTheBlock, an on-chain data analytics firm, and could imply an overall bullish trend on LINK may be coming soon. 

According to IntoTheBlock, LINK’s reducing exchange reserves show investors are transferring their LINK assets from exchanges to self-custody wallets. The transfer of assets from exchanges usually leads to a reduction in the immediate selling pressure of an asset.

Majority of LINK wallets hold between 0 and 1 LINK

$LINK has seen consistent negative exchange netflows for almost a month, indicating sustained withdrawals from exchanges.

This trend often signals accumulation, as holders move assets to cold storage or private wallets, reducing immediate sell pressure. pic.twitter.com/iDLqEPbt0E

— IntoTheBlock (@intotheblock) October 23, 2024

Data from IntoTheBlock further shows that wallet addresses holding LINK have been relatively constant since the year began. However, the majority of the wallets holding the asset have between 0 and 1 link. The data shows that these wallets are about 212.94K at the time of this publication. 

The wallets holding between 10 and 100 LINK currently stand at 191.23k, while those holding between 100 and 1000 LINK stand at 109.34k. As per IntoTheBlock, no wallet holds more than 100 million links, and only 18 wallets hold between 10 million and 100 million links.

Chainlink had a bullish run in September when the crypto market struggled amid bearish investor sentiment. The asset rose from $9 to $13 towards the end of September. 

However, October’s first week saw the asset decline to $10. The asset’s daily active addresses in profit rose to 600 from a low of 155 when the asset crossed the $12 mark, according to data from IntoTheBlock. Although an increase in daily active addresses could signal an imminent bearish trend, long-term investors may be willing to take advantage of LINK’s discounted prices. 

According to data from Binance, LINK is currently trading at $11.45. The asset is currently trading in a range, which adds confluence to the accumulation displayed by on-chain data from IntoTheBlock. 

The asset has been trading between $13 and $9.30. If LINK’s investor sentiment turns bullish, the price could rise to highs of $19.25 and $22.87, recorded in May and February 2024, respectively.

Chainlink introduces the CCIP Private Transactions protocol to privatize institutional transactions

Chainlink unveiled its CCIP Private Transactions protocol as a tool for institutions to maintain privacy and confidentiality in their transactions. 

The first financial institutions to use the protocol were Australia and New Zealand Banking Group (ANZ). The protocol will also allow institutions to adopt it to comply with regulatory standards when executing transactions across various blockchain networks.

The privatized transactions will require institutions to use privacy conditions in a way that keeps on-chain data private from all third parties and adversaries. At the same time, the protocol will enable authorized parties in the transaction or the compliance industry to access and interpret that same data.