LINK ETFs hit 1.16% supply as inflows top $630k

LINK slips ~1% in 24h as ETFs absorb 1.16% supply on steady $630k inflows.

Chainlink exchange-traded funds have accumulated holdings equivalent to 1.16% of the cryptocurrency’s total circulating supply, according to market data reported this week.

The ETFs registered net inflows of $630,000, bringing institutional holdings to the 1.16% threshold. The accumulation represents a shift toward long-term custody positions among institutional investors, according to market observers.

Chainlink’s price has remained in a relatively narrow trading range during the period, according to exchange data. The token’s consolidation occurs as the broader decentralized finance sector’s total value locked surpasses key milestones, according to industry tracking platforms.

Technical indicators including the Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) show signs of momentum improvement, according to market analysis. The token faces potential resistance levels that could be tested in February if buying pressure increases, analysts stated.

The ETF products provide institutional investors with regulated exposure to Chainlink without direct exchange purchases, according to investment analysts. By holding tokens in custody rather than on exchanges, the funds reduce available supply for trading, creating potential scarcity effects, market participants noted.

Chainlink operates as a decentralized oracle network that provides external data to blockchain smart contracts. The project’s Cross-Chain Interoperability Protocol (CCIP) enables asset transfers between different blockchain networks, a feature that has attracted institutional attention, according to industry reports.

The DeFi sector’s expansion has increased demand for oracle services, as smart contracts require reliable external data feeds to function, according to blockchain analysts. Each new protocol integration expands the utility of oracle networks, industry observers stated.

The 1.16% supply threshold marks a notable milestone for institutional accumulation in the Chainlink ecosystem, according to market commentators. Continued weekly inflows could support price stability by reducing exchange-available supply, analysts noted.

Pension funds and other institutional investors have shown interest in cryptocurrency ETF products that offer liquidity and regulatory structure, according to investment industry sources. The products appeal to large investors seeking low-slippage entry points into digital assets, market participants stated.