100% of Chainlink Addresses Are Currently in Profit

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 asset’s 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 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 Litecoin’s (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’.

COO & Co-Founder of IntoTheBlock, Alfredo Terrero explained:

“Since LINK has reached all-time-high prices, there will be a very small proportion of users that bought at the margin, that is, at the ATM. These addresses are usually in exchanges and are not statistically significant, therefore they are not reflected in the indicator.”

Chainlink’s 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”.