In the latest market update, LINK’s circulating supply has increased from 470,099,970 to 491,599,970. This news has sparked a lot of speculation among many in the cryptocurrency community, with some taking this as a bearish signal. However, there is more to this development than meets the eye.
One of the reasons quoted For the massive influx of supplies, additional resources have been deployed for the long-term growth of the Chainlink network.
The additional offering is expected to help the Chainlink network enhance and support the ongoing oracle rewards given to contract operators.
Chainlink will not only improve oracle functionality, but will also offer equity and stake rewards to node operators and community members. Over time, Chainlink claims that this will contribute to higher degrees of crypto-economic security and user guarantees for Chainlink services.
In addition to staking rewards and oracles, Chainlink has issued these tokens to help it be the best oracle solution for other blockchains, including Layer 1 and Layer 2 networks.
Although the Chainlink Network’s intention is to improve its technology, news of the massive oversupply has upset some Chainlink holders.
From the chart below, it can be seen that $LINK showed signs of high social dominance. But all the hype may not be in Chainlink’s favour. In fact, people criticized the timing of this event as they feel that dumping so many coins during the bear market could negatively affect the price. At least in the short term.
As for the price, the $LINK price action over the past few days seems to have echoed the sentiments of people who are critical of the recent token dump. The price is down 30% since August 13, with the same trend continuing to the south, with no signs of hope.
The altcoin, at the time of writing this article, is trading at $6.51 with the crypto downside preventing the $6.41 support level. With the RSI at 37, the momentum is not with buyers at the time of writing. The CMF was also below 0, indicating a bearish future for the coin in the near term.
While the future looks bleak for $LINK in the short term, there is a possibility that if Chainlink continues to stick to its plans, it could have a positive impact on the altcoin price.