According to crypto market data collector Glassnode, Chainlink’s (LINK) token distribution is at a record level of centralization.
Glassnode’s research found that 81% of LINK, whose smart contracts are not held on crypto exchanges, are currently stored in 125 wallets, and the number of tokens held by Chainlink’s whales has steadily increased over the past two years.
The centralization of Chainlink’s token distribution seems extreme when included in smart contracts that exclude tokens held on exchanges and Glassnode’s data.
However, Glassnode estimates that only 12,500 of these addresses are currently active, indicating that around 83% of LINK’s supply is in 0.8% of active wallets.
Chainlink’s whales seem to have accelerated their savings since July 2019, and the supply share represented by the top 1% of LINK owners has steadily increased from 53% to 81% in the past 18 months.
Liesl Eichholz from Glassnode concludes that “upward sentiment” remains strong among Chainlink’s veteran traders, as LINK continues to buy whales despite rising to all-time highs this month:
LINK whales are piling up despite the appearance of Chainlink’s core team selling a significant portion of their private token stashes. Glassnode determined that Chainlink’s team had 52 million LINK moved from their reserve wallets in the past 100 days.
Chainlink established itself as the most widely used oracle network in 2020 and has partnered with tech giant Google and Ethereum rival Tezos (XTZ).