Chainlink Reserves Near Two-Year Low as Supply Compression May Support Continued Price Expansion, Analysts Say

• LINK reserves fell ~35.8M from early 2023 to Sept 2025, coinciding with strong price appreciation.

• Temporary exchange inflow spikes in 2023–2024 matched local price peaks near $12–$18 before outflows resumed.

• Analyst targets (Quantum Ascend) cite $51, $81, and $130 objective levels as liquidity tightens and market cap expands.

Chainlink exchange reserves hit two-year lows as LINK supply compresses on exchanges; read analysis and outlook with targets and key takeaways.

Chainlink’s exchange reserves hit two year lows as analysts track supply compression against fast price expansion.

• LINK reserves fell from 195M to 159.2M while price climbed from $6 to $24.5, indicating continued accumulation.
• Mid cycle reserve spikes in 2023–2024 aligned with local peaks near $12–$18 before outflows resumed.
• Quantum Ascend projects $81, $51, and $130 wave targets as liquidity drops and market cap expands.

Chainlink exchange reserves show a clear decline while market value accelerates, creating a notable supply‑demand divergence. Data compiled from on‑chain exchange balance trackers and a market commentator named Quinten indicate LINK token reserves on centralized exchanges fell from above 195 million tokens in early 2023 to about 159.2 million by September 2025.

Over the same period, LINK moved from roughly $6–$9 into the mid $20s. This pattern suggests persistent withdrawals from trading venues and a shrinking pool of immediately available liquidity.

What caused Chainlink exchange reserves to hit two-year lows?

Chainlink exchange reserves declined due to sustained withdrawals and accumulation off‑exchange, while intermittent deposit spikes reflected profit‑taking. The net effect is lower liquid supply against rising demand, supporting price appreciation. Market commentary and exchange balance data corroborate this supply compression trend.

How did exchange inflows and outflows align with LINK price action?

Exchange inflows spiked mid‑2023, early‑2024, and mid‑2024, each aligning with local price peaks near $12–$18. Traders likely moved tokens to exchanges to realize gains at those levels. Once selling paused, outflows resumed and reserves fell again. These cycles illustrate short profit taking inside a broader accumulation trend.

Source: Quinten on X

Patterns show that every notable deposit surge preceded short‑term peaks. After those spikes, outflows resumed and reserves continued downward. That persistent drain points to long‑term accumulation by holders outside centralized venues.

When did Chainlink accelerate its recovery, and what factors were noted?

From late 2024 into 2025, LINK recovered from near $6 toward $30 while exchange reserves reached two‑year lows. Quinten referenced institutional interest and infrastructure developments—terms mentioned include global bank adoption, a Chainlink Reserve, a potential LINK ETF, and U.S. government collaboration. These claims remain unconfirmed by official sources but contextualize heightened market attention.

How do projected targets relate to reserve trends?

Quantum Ascend mapped wave targets of $81 (Wave 3), $51 (Wave 4), and $130 (Wave 5) while noting market‑cap expansion could outpace price if liquidity tightens. Such projections depend on continued reserve declines or stable supply compression. Historical links between reserve drops and price rallies offer measurable precedents but are not guarantees.

Frequently Asked Questions

How much did LINK exchange reserves drop between 2023 and 2025?

Exchange reserves decreased from roughly 195 million tokens in early 2023 to about 159.2 million by September 2025, representing a decline of ~35.8 million LINK and indicating sustained off‑exchange accumulation.

What does a decline in exchange reserves mean for traders?

A declining reserve suggests less liquid supply for immediate selling, which can reduce volatility and support upward price moves if demand persists. Traders often view this as a bullish supply‑side signal when paired with rising price action.

Key Takeaways

• Reserve decline: LINK centralized exchange balances dropped ~35.8M since early 2023, tightening liquid supply.
• Price correlation: Temporary exchange inflows matched short‑term peaks; persistent outflows resumed afterward.
• Outlook & action: Continue monitoring exchange reserves, order‑book liquidity, and official confirmations for institutional developments.

Conclusion

Chainlink exchange reserves show a measurable compression of liquid supply while LINK’s market value expanded, creating a clear supply‑demand divergence. Continued tracking of exchange balances, deposit spikes, and verified institutional developments will determine whether the current trend sustains price momentum. Follow deposit and reserve data for near‑term risk management and positioning.

Published: 2025-10-01 — Updated: 2025-10-01 — Author: COINOTAG