- In the past two weeks, the Chainlink exchange net flow has been negative, indicating that LINK holders are taking their tokens off the exchanges and betting on the token’s long-term future.
- The total volume staked has shot up in the Chainlink ecosystem, further underlying the confidence that investors have in the oracle network.
As Chainlink’s price increased in February to hit a two-year high, investors have been accumulating LINK for the long term, on-chain data shows. In the past two weeks, over $200 million in LINK has been withdrawn from exchanges, and most of it has landed on staking platforms as total value locked surged.
LINK is trading at $19.60 at press time for a market cap of $11.5 billion, the 12th highest in the market.
While it has shed 1.58% in the past day, the crypto has been on an uptrend since late January. From a monthly low of $13.58 on Jan. 25, LINK has shot up to set a monthly high of $20.80 on Feb. 12, the highest it has traded in two years.
In the bull run of the latter part of last year, the token had been unable to break past the $17 resistance, with attempts in mid-November and throughout December all rejected. However, by setting higher lows and accumulating to cement its support, LINK managed to break out past $17 earlier this month for the first time since January 2022.
LINK Staking Skyrockets as Exchange Holdings Dry Up
As LINK set new two-year highs, investors were taking note. According to data from Lookonchain, around 80 newly created crypto wallets have been withdrawing millions of LINK tokens from exchanges. Their massive withdrawals have come amid a dry-up in LINK held at crypto exchanges.
83 fresh wallets(may belong to the same institution) withdrew a total of 11,097,687 $LINK($216.4M) from #Binance in the past 2 weeks.
Address list:https://t.co/cYgH52rHzxhttps://t.co/JNuXc43l2I pic.twitter.com/u178vVVGiT
— Lookonchain (@lookonchain) February 17, 2024
Data from CryptoQuant further reveals that since the month started, the net flows for LINK on exchanges have been negative, indicating that more tokens have been withdrawn than have been deposited. When more people withdraw their tokens, it’s usually a signal of investors’ bullishness and confidence in a token. On the other hand, an influx in deposits shows that investors are getting ready to dump, and it usually comes right before a price drop. The highest outflow since the month began was on Feb. 5, when over 2.1 million tokens left exchanges.
Meanwhile, the total value locked in Chainlink has been on a steady rise for a month. According to DeFiLlama, the TVL on Chainlink has increased from $603 million on Jan. 26 to $878 million at press time.
While the LINK price action has been among the best over the past month, some analysts believe that we still have more upside in the short term. One, known to his 180,000 X followers as Satoshi Flipper, believes there’s still “an easy 10X from here.”
He added:
…it’s not only one of the most important projects in the space, but it’s also one of the most undervalued and one of the least risky. I’m super comfy parking as much capital as I want there.
