100% of Chainlink Addresses Are Currently in Profit

Wednesday 05 August 2020, 12:26 PM AEST - 1 month ago

The recent Chainlink (LINK) rally has led to some unconventional results — 100% of its supply is in the money or profitable.

This metric simply represents a comparison between the assets current price and the price at which it was acquired. If the current price is higher, then it is in the money, if it is lower, then it is out of the money, and if it is the same, then it is at the money.

Percent of Chainlink supply in/out of the moneyPercent of Chainlink supply in/out of the money. Source: IntoTheBlock.Litecoin — 47%, Bitcoin — 90%

According to an intelligence company IntoTheBlock, currently, the entire supply of the LINK token is in the money. For reference, about 90% of Bitcoin (BTC) supply is currently in the money and only 47% of Litecoins (LTC).

The question is, how can 100% of addresses be in the money at the same time? This is highly unusual for any asset and is only partly explained by the parabolic rise of the asset. Every trade needs a buyer and a seller, so in theory some addresses should be at the money.

Its possible the price was bid up on exchanges without any getting withdrawn to a wallet before the snapshot was taken. Alternatively, the proportion of addresses not in the money at this time may be very small and rounded off to zero. Weve asked IntoTheBlock for an explanation and will update this story when we hear back.

Chainlinks bull run is easier to explain. It has announced a number of key partnerships, integrations and milestones. Also, the project just announced a grant program that will be awarding funds to projects that will help usher in the era when smart contracts become the dominant form of digital agreement.

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