Chainlink, the 9th largest cryptocurrency by market cap, is concentrated in the hands of the top 1% of investors
The ninth-largest cryptocurrency by market cap, Chainlink (LINK), is largely concentrated in the top 1% of investors, according to market data aggregator Glassnode Insights.
What happened: Glassnode data indicates that 81% of LINK is stored in 125 wallets that are not on cryptocurrency exchanges or locked in smart contracts.
While the coin has reportedly surged 46% over the past week, the investments of chain whales (which own a large number of cryptocurrencies) continue to double.
In contrast, the top two cryptocurrencies by market capitalization, Bitcoin (BTC) and Ethereum (ETH), returned 5.02% and 21.94% in the week to press time.
Grayscale Bitcoin Trust Friday
Grayscale Ethereum Trust closed down 9.63% at $39.34
It closed down 4.75% at $14.05.
Demand for LINK hasn’t waned, and the currency hasn’t gained more than 50 million units, or 14%, even after the protocol’s parent company sold some of the tokens it owned, according to Glassnode.
At press time, LINK shares were down 3.37% at $21.53. The coin reached an all-time high of $23.61 on Monday.
Why it matters: According to data provided by Etherscan, taking into account the tokens held by smart contracts and exchanges, it appears that 82.7% of LINK is stored in only 100 wallets, which is less than 0.03% of accounts holding LINK. Courtesy of Cointelegraph.
As reported by Cointelegraph, Glassnode’s strategic growth analyst Liesl Eichholz said: “The continued concentration of supply suggests that despite the increase in available supply, LINK’s major owners remain bullish on the coin and continue to gain more.”
LINK is not the only action seeing growth as BTC has taken a breather. Other cryptocurrencies that surged were SushiSwap (SUSHI), Polkadot (DOT) and Cardano (ADA).