Chainlink developers conducted a buyback of their own $LINK token worth nearly $1.12 million. The average purchase price was $11.14 per token. A total of 127,740 $LINK were transferred to a dedicated reserve wallet, bringing the total reserve volume to 5.48 million $LINK (approximately $48.5 million).
The token buyback is part of Chainlink's long-term strategy. By accumulating $LINK in the reserve, the project reduces the circulating supply in order to manage the cryptocurrency's price. The mechanism resembles a stock buyback in traditional finance. It helps reduce supply and potentially increases the asset's scarcity, which is typically perceived as a bullish signal.
Chainlink plays a crucial role in the decentralized finance (DeFi) sector, providing data to hundreds of protocols. Therefore, the project's actions in tokenomics are closely monitored by both institutional and retail investors. And although the buyback volume is relatively small compared to $LINK's market capitalization (approximately $5.6 billion), it strengthens trust in the project and could serve as a short-term catalyst for traders.
At the time of writing, $LINK was trading at $9.34, according to CoinMarketCap. Over the past 24 hours, the altcoin increased in price by 5.71%, with a weekly gain exceeding 12%.
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