Massive surge in Chainlink as whale transactions push LINK price back towards $20 mark
In a recent development, the cryptocurrency market has witnessed a significant surge in the price of Chainlink (LINK), following the announcement of the Chainlink Reserve. This strategic on-chain reserve, an extension of Payment Abstraction, aims to support the long-term growth, sustainability, and security of the Chainlink Network by accumulating LINK tokens [1][2][4].
The Chainlink Reserve converts various revenue streams, including stablecoins, gas tokens, and offchain payments, into LINK tokens through the Payment Abstraction infrastructure [2][4][5]. By accumulating LINK tokens, the reserve helps stabilize LINK supply and increase demand, underpinning economic resilience and network security as Chainlink expands across DeFi, traditional finance, and large institutional adopters [3].
The reserve also supports cross-chain scalability and interoperability by leveraging Payment Abstraction and Chainlink Automation along with the Cross-Chain Interoperability Protocol (CCIP), helping to consolidate funds securely and efficiently on Ethereum for the reserve pool [2][5].
With the launch of the Chainlink Reserve, the number of whale and shark wallets holding LINK has grown, along with their collective holdings. This holder class now holds 0.67% more of the entire Chainlink supply [6]. The surge in large transaction volume is an indicator of whale activity, suggesting increased interest in the Chainlink Network [7].
As of press time, Chainlink has risen for four consecutive days, reaching a price of $21.04. The amount in the Chainlink Reserve is expected to gradually increase in the coming months, potentially contributing to the continued growth and price increase of Chainlink [8]. The $20 price mark has been reached, and eyes are on the $26 and $30 levels next [9].
Data from IntoTheBlock shows that Chainlink's large transaction volume has significantly surged, reaching 60.76 million LINK or $1.21 billion [10]. Since the start of August, 27 more 100,000 to 1 million LINK wallets have been added, representing a 4.2% increase [6].
The Chainlink Reserve, an on-chain smart contract on Ethereum, serves as a strategic reserve to fortify the network’s economic architecture and ensure a sustainable funding mechanism to enable ongoing innovation, performance, and security without disrupting user experience or the Chainlink service model [2][4].
References:
- Chainlink Announces Chainlink Reserve
- Chainlink Reserve Whitepaper
- Chainlink Reserve: A New Era for Chainlink
- Chainlink Reserve: A Step Towards Network Sustainability
- Chainlink Reserve: Boosting Cross-Chain Interoperability
- Chainlink Whale and Shark Wallets Growing
- Chainlink's Large Transaction Volume Spikes
- Chainlink Reserve to Increase LINK Holdings
- Chainlink Price Hits $20, Eyes on $26 and $30
- Chainlink's Large Transaction Volume Surges
- The Chainlink Reserve, a strategic on-chain smart contract on Ethereum, has been accumulating LINK tokens through Payment Abstraction infrastructure, aiming to support the long-term growth and security of the Chainlink Network.
- The surge in the price of Chainlink (LINK) has been followed by an increase in the number of whale and shark wallets holding LINK, along with their collective holdings, suggesting increased interest in the Chainlink Network.
- The Chainlink Reserve converts various revenue streams, including stablecoins, gas tokens, and offchain payments, into LINK tokens, helping stabilize LINK supply and increase demand, underpinning economic resilience and network security as Chainlink expands.
- The Chainlink Reserve helps consolidate funds securely and efficiently on Ethereum for the reserve pool, supporting cross-chain scalability and interoperability by leveraging Payment Abstraction, Chainlink Automation, and the Cross-Chain Interoperability Protocol.
- With the launch of the Chainlink Reserve, data from IntoTheBlock shows that Chainlink's large transaction volume has significantly surged, reaching 60.76 million LINK or $1.21 billion, potentially contributing to the continued growth and price increase of Chainlink.
