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Even at its worst times, Chainlink has been moving ahead of the altcoin "pack" thanks to the large number of whales and large investors who are ready to support the asset on its way down or up. This cryptocurrency market rally is no exception. According to the on-chain data, whales are heavily accumulating LINK while the rest of the market is rallying.
As data provided by santiment suggests, there are 464 addresses that hold at least 100,000 LINK. The total number of those addresses increased by more than 26% since May 2022, which could be one of the main reasons behind LINK's resilience even during periods of liquidity crisis and market-wide correction.
🔗🐳 #Chainlink is floating a bit ahead of the #altcoin pack today. There are 463 addresses that hold at least 100,000 $LINK, and they have ascended +26% since May, 2022. It is encouraging when an asset sees whale accumulation during corrections. https://t.co/QNKzhuU24g pic.twitter.com/9hBqsQR89J— Santiment (@santimentfeed) January 17, 2023
Generally, the total number of whales on the Link network has been on the rise since 2020. Despite the beginning of the bear market, the amount of whales who stayed with Link never went down.
The reason behind an unusually high demand for Chainlink could be tied to the intensity of updates that developers release almost every month. Chainlink has been actively betting on the further development and adoption of Web3 technologies.
Considering the popularity of Web3 technologies among venture investors and institutions, Chainlink became one of the most popular assets that might help them gain exposure to the rapidly developing industry.
The on-chain data suggests that the main driver of Link is not retail investors but either institutional or large retail investors. With the number of whales on the network growing rapidly, we might see a further continuation of Chainlink’s rally on the market despite the lack of liquidity and funding.
At press time, Link is trading at $6.7 while losing around 1% of its value in the last 24 hours.