Whales indicate Prominent investors are offloading the popular RWA cryptocurrency
Chainlink (LINK) has been gaining popularity over the past year due to its real-world assets narrative, attracting retail investors and experiencing price increases. However, it seems that Chainlink whales, who hold large amounts of the token, have been reducing their exposure and selling off their holdings.
This information was obtained by Finbold through premium data from Santiment, which tracks the U.S. dollar value held by Chainlink whales. A whale is defined as any address holding over $2 million worth of LINK, considering its $10 billion market cap.
The data shows that these whale holdings have decreased from $550.56 million on June 4, 2023, to $464.65 million at the time of this report. It is worth noting that the price of LINK has more than doubled in the past year, from $6.07 to $17.6, making the drop in whale holdings even more significant. This serves as a relevant signal to the cryptocurrency market.
On the other hand, Ethereum (ETH) whale balances have been increasing over the same period, following the year-over-year price trend.
One reason for Chainlink’s popularity is the real-world assets narrative, which has been fueled by BlackRock’s interest in tokenization. BlackRock’s CEO, Larry Fink, has expressed his belief in the value of tokenization and the company is supporting an investment fund in this asset class. Chainlink benefits from this trend because of its leading Oracle solution, which collects off-chain data from the real world and broadcasts it on-chain.
However, the token LINK does not have a clear demand for those interacting with the chain. Its main utility is rewarding Oracle node operators, which creates supply pressure but lacks market demand beyond speculation.
Currently, the token’s value is sustained by speculative demand, but the decrease in whale activity suggests that this may not be sustainable in the long term. Chainlink has recently been trending on Reddit, indicating retail investors’ interest in speculating on LINK.
Without a clear demand, LINK’s price is primarily driven by hype and social media buzz. Those who invest in this token are essentially gambling, hoping that someone else will buy it at a higher price. This behavior also highlights the inherent risks of such investments, as the market can eventually run out of willing buyers. When the hype fades and demand declines, investors may be left with worthless assets and significant financial losses.
Disclaimer: The content on this site should not be considered investment advice. Investing in cryptocurrencies is speculative, and there is a risk of losing your capital.