Chainlink Reserve Announcement Sends Bullish Signal to Crypto Markets
Following the accumulation of millions in the underlying cryptocurrency by major holders, Chainlink launched its LINK reserve on Thursday. According to the announcement made on Thursday, Chainlink’s on-chain and off-chain revenue streams would be used to support the reserve.
The project’s growth, security, and sustainability will all be enhanced by the reserve’s earnings, which were acquired through widespread institutional adoption of the Chainlink standard. LINK has already contributed $1 million to the initiative.
Chainlink Leads the Treasury Trend
A wider change in investor sentiment toward cryptocurrency markets is reflected in Chainlink’s decision to establish a reserve. More businesses are following Strategy’s lead and putting cryptocurrency tokens in their treasuries, especially now that regulations governing digital assets are clearer.
These digital asset treasuries allow for reaching institutional and retail investors that may not be comfortable or otherwise able to directly trade or own crypto assets rather than stocks,
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Chainlink Reserve Strategy Sparks Bullish Frenzy Among Large Holders
Chainlink stated that, like digital asset treasuries, it has no intention of selling the LINK tokens that are kept in reserve. In the medium term, the amassing of the reserve essentially takes the tokens out of circulation, resulting in a persistent negative supply shock. High net worth investors are growing their holdings of LINK, according to Santiment’s on-chain data, which also demonstrates a bullish trend. In August, the number of wallets with 100,000–1,000,000 LINK rose by 4.2% to 670. Over the same time span, the large-scale wallets amassed over $85 million worth of LINK, or 0.67% of the total supply.
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