- On-chain data has spotted ongoing accumulation of Chainlink (LINK) by market whales.
- Binance Exchange is linked to accumulation which is fast becoming a pattern.
Lookonchain, a popular blockchain tracking firm recently drew the attention of the crypto community to a substantial accumulation of Chainlink (LINK) by large holders often referred to as “whales” on Binance, the world’s largest crypto exchange.
Whales Flock to Chainlink (LINK)
“It seems that whales are buying $LINK! We noticed that 8 fresh wallets withdrew 831,160 $LINK ($16.72M) from Binance in the past 2 days,” noted Lookonchain in a recent post on the X platform.
It seems that whales are buying $LINK!
We noticed that 8 fresh wallets withdrew 831,160 $LINK($16.72M) from #Binance in the past 2 days.
Address:https://t.co/bkikjTpUtyhttps://t.co/DaBt99fo8Ohttps://t.co/h8fjMdXiU4https://t.co/vcBkwRMUJMhttps://t.co/sD9YDQd4Sj… pic.twitter.com/77Y9RqF3t6
— Lookonchain (@lookonchain) March 9, 2024
This surge in accumulation follows a broader trend observed over several months, where institutional entities, often referred to as “mysterious whales,” have steadily amassed LINK through Binance withdrawals. In February alone, these entities acquired nearly a quarter of a billion dollars worth of LINK, also through Binance withdrawals.
At the time of writing, LINK is trading at $20.59, experiencing a slight rise of 1% in the last 24 hours and 5% in the last week, with a trading volume of $767 million and a market cap of $12 billion.
Despite this short-term fluctuation, Chainlink has seen unprecedented growth in its Open Interest, reaching a peak of $533 million in early February, as previously reported by Crypto News Flash. This achievement emphasizes the growing optimism among investors regarding LINK’s long-term prospects.
Chainlink’s technical analysis further reinforces its bullish outlook, with the crypto rising above its 20-day Exponential Moving Average (EMA). Analysts predict that Chainlink’s sustained demand will likely propel LINK to the $30.00 mark in the near term.
The Role of Chainlink as a Decentralized Oracle Network
Chainlink, as a decentralized oracle network, plays a crucial role in facilitating the integration of real-world assets into blockchain ecosystems, particularly in the realm of Decentralized Finance (DeFi). These networks provide accurate and secure off-chain data to on-chain smart contracts, enabling the seamless interaction between blockchain-based applications and real-world data sources.
According to Sergey Nazarov, co-founder of Chainlink, the next evolution in capital markets involves the tokenization of Real-World Assets (RWA), a process that decentralized oracle networks like Chainlink are well-positioned to facilitate. Nazarov envisions a future where decentralized oracle networks play a crucial role in the movement of real-world assets onto the blockchain, supported by reliable data.
As formerly reported by Crypto News Flash, Chainlink has already demonstrated its practical applications in this regard, with successful collaborations such as the implementation of Chainlink proof of reserves by Ark/21Shares. This partnership highlights Chainlink’s capability to enable secure and transparent asset management on the blockchain.
As the push toward digital asset management gets traction, the integration of decentralized oracle networks becomes increasingly important for complete data provision, off-chain computation, and cross-chain communication. Chainlink remains at the forefront of this change, with plans to continue promoting blockchain innovation and acceptance.
