• Wallet addresses holding 1 million to 10 million LINK accumulated nearly 62 million tokens during the dip in price.
  • In August 2021, large wallet investors accumulated LINK; however, the supply was redistributed soon after.
  • Chainlink's recent partnership with Avalanche and Cardano is expected to boost the utility of LINK tokens.

A sell-off has historically followed the accumulation of the altcoin by large wallet investors. LINK whales are known to hold tokens for short periods. Another cycle of accumulation has kicked in with the purchase of $1.4 billion worth of Chainlink by whales. 

Chainlink whales bought the dip, added 62 million LINK to their holdings

Large wallet investors have accumulated 62 million LINK tokens during the recent price drop. The accumulated tokens are equivalent to 3.4% of the total LINK supply. "Weak hands" – wallet addresses known to sell rather than hold cryptocurrencies – sold their LINK holdings. 

The market-wide sell-off event was accompanied by whale accumulation. Addresses holding between 1 million and 10 million LINK added 62 million tokens to their holdings. 

Chainlink Supply Distribution

Chainlink (LINK) supply distribution 

Previously in August 2021, Chainlink whales had accumulated LINK tokens; however, these investors shed their holdings soon after. 

Crypto behavior analytics platform Santiment has observed the unwillingness of large investors to hold LINK; therefore, the altcoin's supply gets redistributed among small wallet investors. 

Shedding their LINK holdings is a natural response to the altcoin's volatility. Since the first week of September, there has been a consistent drop in LINK price. 

Analysts expected Chainlink's recent partnerships with Avalanche and Cardano to trigger a rally in the altcoin's price. However, despite the announcement of the partnership on September 25, LINK has failed to recover. 

A pseudonymous cryptocurrency analyst at an investment firm with the Twitter handle @EffortCapital expects Chainlink to rally. The analyst believes that the Oracle network is the next stop of capital rotation after layer-1 solutions. 

Michäel van de Poppe, CEO and co-founder of Eight Global, considers LINK significantly undervalued. The analyst's opinion resonates with @EffortCapital's expectation of a bull run in LINK.

 


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Crypto Today: Cardano, XLM, FLOKI lead $3.1 trillion rally, Russia bans crypto mining, Bitcoin eyes $95K

Crypto Today: Cardano, XLM, FLOKI lead $3.1 trillion rally, Russia bans crypto mining, Bitcoin eyes $95K

Cardano (ADA) price action ADA’s ongoing rally has been attributed to rumors that the Trump administration could collaborate with the Cardano network to build a blockchain voting system.

More Cryptocurrencies News
Trump administration allegedly seeks to create new crypto position in White House

Trump administration allegedly seeks to create new crypto position in White House

President-elect Donald Trump and his team are reportedly seeking to introduce a new White House position for crypto policy, Bloomberg reported on Wednesday.

More Crypto News
Solana Price Forecast: Traders move 6.7B SOL as bulls target all-time highs

Solana Price Forecast: Traders move 6.7B SOL as bulls target all-time highs

Solana price has succumbed to a 7% dip after rejecting the $250 resistance on Monday. Negative shifts in vital trading indicators suggest bears could delay the all-time high breakout target. 

More Solana News
FLOKI to go live on Coinbase few days after the exchange listed PEPE and WIF

FLOKI to go live on Coinbase few days after the exchange listed PEPE and WIF

Floki Inu (FLOKI) is down 5% on Wednesday following crypto exchange Coinbase's announcement that the token will begin trading on its platform over the next 24 hours.

More Crypto News
Bitcoin: New high of $100K or correction to $78K?

Bitcoin: New high of $100K or correction to $78K?

Bitcoin surged to a new all-time high of $93,265 in the first half of the week, followed by a slight decline in the latter half. Reports highlight that Bitcoin’s current level is still not overvalued and could target levels above $100,000 in the coming weeks.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP