Chainlink's LINK reserves hit near-record lows as ETF inflows slow

Chainlink’s (LINK) exchange reserves have fallen sharply since 2022, now resting near a low of 85 million tokens. This decline follows a steady downward trend, with Binance holding the majority of the remaining supply. Meanwhile, spot LINK ETFs saw their weakest monthly inflows in May, raising questions about shifting market dynamics. LINK reserves on exchanges once reached a peak of 145 million tokens. Since then, they have followed a clear descending pattern, dropping to around 85 million today. Binance dominates these holdings, controlling 85.1 million LINK—worth roughly $766 million—which accounts for 66.4% of all exchange-held supply.

Spot LINK ETFs, launched in late 2024, have maintained consistent inflows without a single day of net outflows. However, May’s net inflows of $8.29 million marked their lowest monthly figure to date. These ETFs now hold 1.69% of LINK’s total circulating supply.

Historically, large inflows of LINK into exchanges have coincided with periods of heightened price swings. Yet, such movements have more often led to weaker closing prices in the days that followed. The current level of LINK reserves sits near the lower end of its recent range, reflecting a broader decline since 2022. With Binance’s dominance in exchange holdings and ETF inflows slowing, the market’s next moves may hinge on these shifting supply patterns. The absence of net outflows in ETFs remains a notable exception in an otherwise cautious month.