Chainlink (LINK) is experiencing a significant supply crunch as exchange reserves drop to 161.8 million tokens, the lowest level in years according to CryptoQuant data. This trend began in mid-2023 when LINK was trading around $6-7, and the token has since surged over 230% to current levels near $23.
The supply reduction coincides with massive institutional adoption including Bitwise's filing for a Chainlink ETF with the SEC, which would track LINK's price via CME's reference rate with Coinbase Custody safeguarding reserves. Chainlink has also partnered with the US Department of Commerce to bring macroeconomic data like GDP and PCE Index on-chain, while expanding integrations with Arbitrum, Base, Ethereum, and Polygon.
Market metrics show conflicting signals - while 90% of LINK holders are in profit according to Glassnode (potentially creating selling pressure), open interest has exploded from $115 million to over $1.2 billion in the past year. Technical analysis indicates LINK must break through the $24.5-$24.85 resistance zone to confirm a bullish trend continuation.