Chainlink’s native token LINK has been experiencing consistent negative net flows over the last few weeks reaching a month. The trend shows a suspicion that investors have been on an accumulation spree, moving their tokens from exchanges to self-custody wallets. The update is also coming after Chainlink’s recent launch of the CCIP private transactions protocol for institutions.
According to on-chain data, investors are still accumulating the asset despite massive withdrawals from centralized exchanges. The progressive data was identified by the on-chain data platform IntoTheBlock, which stressed that traders are optimistic about the upward trend of the asset in the coming days.
IntoTheBlock clarified that the transfers show that traders have a bullish faith in the asset, signaling a potential uptick in its performance. The platform also revealed that such transfers from centralized exchanges have often led to a drop in selling pressures on assets.
Most LINK wallets hold between 0 and 1
IntoTheBlock data shows that LINK wallet address balances have been relatively constant since the beginning of the year. These assets hold between 0 to 1 LINK as their balance. As of the time of writing, these wallets are about 212,000.
Wallets with balances between 10 and 100 LINK currently stand at 191,000, while wallets with a balance between 100 and 1000 LINK are about 109,000. Per the on-chain analysis platform, there are only 18 wallets that hold between 10 million and 100 million LINK while there are no wallets that hold more than 100 million LINK.
Chainlink posted a positive September even though most assets struggled in that period. During the period, the token’s price climbed from $9 to $13. However, it saw a slight decline at the beginning of October to trade at $10.
The daily address profit also saw a major bump up, rising from a small figure of 155 to about 600. According to IntoTheBlock, the rise happened when the asset posted a price of $12. Although the asset could be open to the bears as its addresses continue to increase, investors might be willing to ride it out due to the discount in its price.
Chainlink introduces CCIP private transactions protocol
Chainlink recently unveiled its new tool that will cater to institutional investors. The new tool, its CCIP private transactions protocol, will help institutions to maintain privacy in their transactions.
The Australia and New Zealand Banking Group (ANZ) was the first institution to test the technology. The platform said it will allow institutions to adopt it in a way that will comply with regulatory standards while carrying out transactions across chains.
The technology will allow institutions to use blockchain in a way that sensitive data is encrypted from third parties. However, these data can be viewed by auditors upon request, making it regulatory-friendly. The platform said the technology is open to firms that want to try it on request.