Chainlink Surges on Institutional Demand and Buybacks
Chainlink's price has surged by 15% in two days, thanks to strong institutional demand and recurring buybacks. The protocol purchased 103,041 LINK tokens worth approximately $1.09 million during the week, reducing the available supply and adding another demand source.
Institutional activity also played a significant role, with Bitwise purchasing over 127,000 LINK tokens worth around $1.36 million through Wintermute. This created an additional demand channel for Chainlink, which helped to drive up its price.
However, despite the strong demand, exchange inflows have risen, driven by profit-taking from short-term traders. The net inflow of 4.83 million LINK tokens on August 21st exceeded Chainlink's latest buyback in size, adding pressure on the supply side.
The derivatives market has also seen a decline in participation, with volume falling by 30.65% to $788.53 million and Open Interest decreasing by 4.45% to $686.14 million. This suggests that the rally may be increasingly dependent on continued spot absorption and sustained buying.