Chainlink (LINK) has been on a tear lately, significantly outperforming other cryptocurrencies. Let’s dive into why.
LINK’s Recent Price Rocket
LINK investors have had a great few weeks. The price has nearly tripled since the beginning of November! There was a small dip earlier this week, but the upward trend is back in full swing. LINK has jumped over 47% from its recent low and broke through the $28 mark. It’s currently boasting over 22% weekly gains, making it a top performer among major cryptocurrencies. It’s now the 12th largest cryptocurrency by market cap, just above Shiba Inu (SHIB). While still a ways off, its next target is Avalanche (AVAX).
What’s Fueling the Surge? Whale Activity!
On-chain data offers some clues. Santiment, a crypto analytics firm, looked at how different investor groups have been behaving. They focused on “Supply Distribution,” tracking how much LINK different wallet sizes hold. They looked at two groups: those holding 0-100,000 LINK (roughly $2.8 million at current prices) and those holding 100,000+ LINK (the “sharks” and “whales”).
The data shows smaller investors have been selling off LINK in recent months. However, the big players—the whales—have been actively buying, accumulating a whopping 5.69 million LINK from smaller investors. This accumulation by large investors is often a bullish sign for the market. Historically, when whales buy up coins from smaller, potentially panicked sellers, the market cap tends to increase.
