Chainlink (LINK) Price Faces Correction as Project Unlocks 11.25M Tokens

While crypto markets strive to sustain their bull runs, Chainlink has unlocked millions of LINK tokens, an incident that has attracted attention.

Chainlink has unlocked another batch of 11.25 million LINK tokens, sparking concerns about a potential price drop.

According to Spot on Chain, Chainlink sent the majority of the unlocked tokens, 10.625 million LINK tokens (worth $243.5 million), to Binance. Another 625K LINK tokens (worth $14.4 million) were unlocked to multi-sig wallet “0xD50.”

This latest unlock brings the total LINK tokens unlocked by Chainlink since August 2022 to 157 million (worth $1.73 billion). Out of these coins, Chainlink directly deposited 136.5 million LINK tokens ($1.52 billion) to Binance at an average price of $11.1.

Chainlink still holds 361.5 million LINK coins (valued at $8.45 billion) across 15 non-circulating supply contracts, the data showed.

LINK’s Massive Unlocking Could Cause a Price Drop

Crypto investors should be prepared for a potential price decrease as a large number of new Chainlink tokens hit the market. Chainlink unlocks millions of LINK tokens as part of its regular unlocks to increase the circulating supply.

However, this activity usually raises concerns in the crypto community about a potential price drop. Currently, LINK is down, similar to the rest of the broader market, with its price dropping 20.6% in the last seven days.

Since such massive tokens hitting exchanges, token holders might take precautionary measures to liquidate their assets as they could fear a possible price decline. The increase in circulation supply could further decrease LINK’s price soon.

The unlock appears to have caused a further plunge in LINK, as the value of the assets is currently down 0.9% in the last one hour, at the time of writing.

LINK Experiencing Short Price Correction

The broader crypto market has been volatile of late, with LINK and other tokens taking a dip. BTC is currently trading at $97,512.60, up 4.5% in the last seven days.

LINK price is facing a short-term decline, as its value has been down 8.9% in the last two weeks. However, the risk factor seems to have peaked, which might lead to anticipation for the asset to see another potential positive momentum, boosted by recent whales’ activity.

Five days ago, a big investor withdrew a whopping 529,999 LINK tokens, valued at $15.5 million, from Binance. However, the activity raised concerns about the whale’s intentions with such enormous movement.

Usually, such big transfers of funds decrease the market liquidity and thus act as an indicator of strategic positioning. Big investors withdrawing assets from centralized exchanges signals that they are either getting prepared to hold them for the long term or planning to utilize them in the DeFi markets.

In the past few days, Chainlink holders enjoyed bolstered prices when the crypto DeFi project associated with President Donald Trump bought a massive amount of LINK tokens. Last week, the DeFi project purchased a staggering $2 million worth of LINK tokens, sparking rumors that Chainlink would play a key role in the growing DeFi landscape.

Such activity could lower the selling pressure on exchanges and positively impact the price of Chainlink indirectly. Large token holders’ withdrawal behaviors indicate further evidence that whales have greater confidence in the token and its long-term potential.