Chainlink primed for $12 next? LINK buybacks and ETF demand hint at…

Despite heavy Exchange Inflows, recurring buybacks and Bitwise ETF purchases supported Chainlink’s two-day 15% rally.

The Chainlink buyback added another demand source and reduced LINK’s available supply. The protocol purchased 103,041 LINK for about $1.09 million during the week.

Although higher prices reduced the LINK acquired, weekly spending remained near $1 million. Therefore, recurring purchases continued to remove available tokens as Chainlink appreciated sharply.

Institutional activity added another demand source through continued Bitwise Chainlink ETF purchases.

Bitwise purchased more than 127,000 LINK worth approximately $1.36 million through Wintermute. 

Together, protocol buybacks and Bitwise ETF purchases created two demand channels during LINK’s 15% advance. However, these flows must offset rising Exchange Inflows, likely driven by profit-taking from short-term traders.

Can Chainlink demand offset Exchange Inflows?

Despite stronger institutional demand, LINK’s Spot Netflow reached $4.83 million on the 21st of August.

The net inflow marked a notable reversal from the predominantly negative readings visible across previous periods. 

As a result, more LINK entered exchanges while buybacks and ETF accumulation removed supply elsewhere.