Chainlink Launches $1M Reserve: Whales Respond with Major Buys
Chainlink has officially launched a dedicated LINK reserve, attracting $1 million worth of the token in its first days. The reserve will be funded by the project’s on-chain and off-chain revenue streams and is intended to enhance the growth, security, and long-term sustainability of the network.
In Brief
- Chainlink launched a LINK reserve funded by protocol revenues, holding $1M in its first days with no plans to sell.
- Whale wallets accumulated 0.67% of LINK’s supply in early August, worth about $85M.
- Exchange reserves dropped by 33M LINK, signaling lower sell pressure.
Aligning with a growing treasury trend
According to Thursday’s announcement, the reserve is a long-term strategic move with no plans to sell the accumulated LINK . This effectively removes the tokens from circulation for the foreseeable future, creating what analysts call a “negative supply shock”, a condition that can increase scarcity and potentially support price growth.
Chainlink’s decision reflects a wider shift in crypto treasury management. Following improved regulatory clarity around digital assets, more companies have begun adding cryptocurrencies to their reserves. While firms like MicroStrategy have famously adopted Bitcoin for their corporate treasuries, Chainlink is applying a similar model to its native token, LINK, ensuring that the reserve strengthens the protocol rather than serving as a speculative holding.
Whales accumulate millions in LINK
The launch comes as large-scale LINK holders (wallets holding between 100,000 and 1,000,000 tokens) have significantly increased their stakes. On-chain data from Santiment shows these wallets grew by 4.2% to a total of 670 addresses in August. Collectively, they’ve added 0.67% of LINK’s total supply, worth around $85 million at current prices.
This whale accumulation signals renewed confidence in the project’s long-term trajectory, especially as the reserve further constrains circulating supply.
Exchange balances fall, supply tightens
Data from CryptoQuant reinforces the bullish outlook. LINK reserves on centralized exchanges have dropped from 180 million to 147 million tokens, a decline of 33 million coins. Such reductions typically indicate fewer holders are prepared to sell in the near term, reducing potential sell pressure in the market.
If this trend continues alongside the reserve’s growth, LINK could face a prolonged period of reduced supply, a dynamic that historically supports upward price momentum when demand remains steady or grows.
