Chainlink has gone up by almost 12% during the past week as on-chain data shows investors have continuously been withdrawing from exchanges.
LINK Exchange Netflow Has Been Negative For Last Ten Days
In a new post on X, the institutional DeFi solutions provider Sentora has talked about the latest trend in the Exchange Netflow of Chainlink. The “Exchange Netflow” is an indicator that measures the net amount of the asset that’s entering or exiting the wallets associated with centralized exchanges.
When the value of this metric is positive, it means the investors are making net deposits to these platforms. As one of the main reasons why holders transfer to exchanges is for selling-related purposes, this kind of trend can lead to a bearish outcome for the asset.
On the other hand, the indicator being under the zero mark suggests the exchange outflows are overwhelming the inflows. Generally, holders take their coins into self-custodial wallets when they plan to hold them in the long term, so such a trend may end up being bullish for the cryptocurrency’s price.
Now, here is a chart that shows the trend in the Chainlink Exchange Netflow over the past ten days:
Looks like the value of the metric has been negative during this period | Source: IntoTheBlock on X
From the graph, it’s visible that the Chainlink Exchange Netflow has remained at negative values throughout this window, implying investors have consistently been pulling supply out of central entities.
“Exchanges have seen uninterrupted net outflows of LINK since 20 June, with about 3.86 million tokens ($51.26 million) leaving exchanges since then,” notes Sentora. Alongside the outflow spree, the coin has enjoyed a price surge of nearly 12% over the past week.
This could be a potential indication that the outflows have corresponded to accumulation from the traders. Though something to note is that the bulk of the gains came in a quick, strong burst, and the rally has cooled off since. Thus, while the withdrawals have been maintained, the coin hasn’t pushed higher.
Nonetheless, the fact that Chainlink holders are continuing to shift coins away from the wallets that they don’t control remains a constructive sign for the cryptocurrency.
In some other news, Bitcoin has recently also experienced exchange outflows, as X user Badwi Crypto has pointed out using data from the on-chain analytics firm Santiment.
The trend in the BTC Supply on Exchanges during the past few months | Source: @BadwiCrypto on X
As displayed in the above chart, the amount of Bitcoin supply sitting in exchange-associated wallets saw a decline earlier in the year, which culminated in a sharp withdrawal spree this month. Since the burst of outflows, however, the metric has taken on a sideways trend.
LINK Price
At the time of writing, Chainlink is floating around $13.22, down more than 1% in the last 24 hours.
The price of the coin seems to have declined from yesterday's peak | Source: LINKUSDT on TradingView
Featured image from Dall-E, IntoTheBlock.com, Santiment.net, chart from TradingView.com
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