The Grayscale Chainlink Trust (GLNK) has been trading at 200% premium to the spot price amid the recent LINK price rally.
Oracle service provider Chainlink has been in the limelight once again as the LINK price surged to $15 in a phenomenal 98% price surge just over the last 20 days. The recent LINK price rally comes as the institutional demand for the altcoin also skyrockets.
The Grayscale Chainlink Trust (GLNK) has witnessed an astounding 200% premium compared to the prevailing LINK market rates, marking a considerable surge of nearly 100% over the past week. This week, GLNK reached a closing price of $44.11, a significant leap from its October 31 level of $21.
ChainLinkGod was the first to highlight the substantial price differential. The data reflects a growth in the spread between GLNK and LINK, expanding from approximately 100% to 200% during the recent Chainlink rally.
Grayscale Chainlink Trust $GLNK trading at a 200%+ premium over spot 🤔
$39 per share, with 0.93482160 $LINK per share pic.twitter.com/0dxljSDzQ8
— Zach Rynes | CLG (@ChainLinkGod) November 8, 2023
It’s essential to note that users cannot directly redeem the shares in Grayscale’s trusts for the underlying assets they represent. Investors can exit their positions by selling these shares to interested buyers.
The widened premium between GLNK and LNK primarily resulted from the doubled total value locked in GLNK, reaching around $4 million. CoinShares reported that the product received inflows worth $2 million in the past seven days. It’s worth mentioning that Grayscale Trusts shares are securities, exclusively available to sophisticated investors. ChianLink God said:
“While the AUM of $GLNK is only ~$4M, it’s interesting nonetheless to see the demand spike on a product geared towards institutional investors.”
The LINK Price Rally and Whale Accumulation
In its recent rally, Chainlink has displayed remarkable strength, as the LINK price surged by another 10% to reach $14.85 at the time of writing. Notably, this marks the first time LINK has come close to $15 in the past 19 months.
Santiment, an on-chain data provider, has reported that Chainlink’s impressive surge continues unabated, with this 12th largest cryptocurrency in terms of market capitalization consistently outperforming the broader crypto market. Dormant tokens are re-entering circulation, and wallets holding 10,000 to 10 million $LINK tokens have exhibited a historical trend of accumulation.
Photo: Santiment
Some analysts have already set optimistic price targets for Chainlink, with expectations of reaching $20. However, the LINK price currently faces a critical resistance point at $18.
One significant factor contributing to LINK’s price movement could be the adoption of Chainlink’s Cross-Chain Interoperability Protocol (CCIP) by both institutional players and cross-chain projects. Often hailed as the “new gold standard” for cross-chain interoperability, CCIP was launched on Mainnet Early Access in July and has been integrated into various blockchain networks, including Ethereum, Polygon, Avalanche, Optimism, Arbitrum, and Base.
next