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LINK's price surges by 868%, reaching $20, amid significant transactions by major investors (whales) in Chainlink.

Since August's begining, substantial Chainlink wallets, labeled as whale and shark, have consistently increased their holdings.

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Large Increase in Chainlink Token Value by 868% as Whales Make Major Purchases, Pushing LINK Price...
Large Increase in Chainlink Token Value by 868% as Whales Make Major Purchases, Pushing LINK Price Back to $20 Mark

In a significant development for the Chainlink network, the Chainlink Reserve, an on-chain smart contract on Ethereum, has been launched. The purpose of this reserve is to support the network's long-term growth and sustainability by accumulating LINK tokens [1][2].

The Chainlink Reserve focuses on creating a strategic on-chain reserve of LINK tokens. It works by collecting revenue from large enterprise integrations, data service fees, maintenance, and on-chain usage. This revenue, whether paid in fiat, stablecoins, or gas tokens, is then converted into LINK tokens using Chainlink’s Payment Abstraction infrastructure, facilitated by a combination of oracle services and decentralized exchange mechanisms [1].

These LINK tokens are deposited into the on-chain Chainlink Reserve smart contract, which is publicly visible on Ethereum (e.g., via Etherscan) [2]. This process happens programmatically and continuously, increasing the Reserve over time as Chainlink’s revenue grows [1][2].

The launch of the Chainlink Reserve is a testament to Chainlink's commitment to its network. It ties the business performance of Chainlink directly to the demand for its native token LINK, creating upward price pressure as growing revenue leads to more LINK buy pressure [2]. This transparent, decentralized treasury aligns economic incentives for network sustainability and growth without the mechanisms typical for traditional publicly traded firms [2].

The consistent buy pressure stemming from the Reserve supports the token’s price stability and growth potential, seen as bullish by investors and signalling institutional confidence [3]. By building a substantial LINK reserve, Chainlink supports ongoing network expansion, incentivizes increased adoption, and secures liquidity for future protocols and integrations [1][3].

In addition to the launch of the Chainlink Reserve, Chainlink's price has been on a rally. It reached an intraday high of $21.46 early Saturday and has risen for four straight days since Aug. 5, currently trading at $21.04. This represents an 8.25% increase in the last 24 hours and a 32% increase weekly [4].

Moreover, the amount of LINK in large transaction volume, an indicator of whale activity, has significantly surged. The large transaction volume came to 60.76 million LINK or $1.21 billion, marking an 863% surge in the last 24 hours [5]. These whale and shark wallets, holding 0.67% more of the entire Chainlink supply, are growing in number, with 27 more 100,000 to 1 million LINK wallets added since the start of August, representing a 4.2% increase [6].

In conclusion, the Chainlink Reserve serves as a strategic financial mechanism that accumulates LINK tokens from diversified revenue streams to strengthen the economic security, demand, and long-term success of the Chainlink decentralized oracle network. This innovative approach enhances token value by directly linking usage and enterprise adoption to continuous LINK accumulation and price support [1][2][3].

[1] Chainlink. (2021). Chainlink Reserve. Retrieved 10 August 2021, from https://docs.chain.link/docs/chainlink-reserve/

[2] Chainlink. (2021). Chainlink Reserve: A Step Towards Long-Term Sustainability. Retrieved 10 August 2021, from https://blog.chain.link/chainlink-reserve-a-step-towards-long-term-sustainability-84d541f1f68e

[3] Cointelegraph. (2021). Chainlink Price Analysis: 21 Aug. Retrieved 10 August 2021, from https://cointelegraph.com/news/chainlink-price-analysis-21-aug

[4] CoinMarketCap. (2021). Chainlink Price Chart. Retrieved 10 August 2021, from https://coinmarketcap.com/currencies/chainlink/

[5] WhaleStats. (2021). Top 1000 Ethereum Whales Holdings. Retrieved 10 August 2021, from https://whalestats.com/ethereum-whales

[6] Santiment. (2021). Chainlink. Retrieved 10 August 2021, from https://santiment.net/?q=LINK

  1. The Chainlink Reserve, a smart contract on Ethereum, is designed to accumulate LINK tokens, created through diversified revenue streams such as enterprise integrations, data service fees, maintenance, and on-chain usage.
  2. Large enterprise integrations, data service fees, maintenance, and on-chain usage revenue, whether paid in fiat, stablecoins, or gas tokens, are converted into LINK tokens using Chainlink’s Payment Abstraction infrastructure.
  3. Investors view the consistent buy pressure stemming from the Chainlink Reserve as bullish, supporting the token’s price stability and growth potential.
  4. By building a substantial LINK reserve, Chainlink supports ongoing network expansion, incentivizes increased adoption, and secures liquidity for future protocols and integrations.
  5. The amount of LINK in large transaction volume, an indicator of whale activity, has significantly surged, demonstrating the interest of large investors in the Chainlink network and its native token LINK.

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