Chainlink’s LINK Token Surges to 24-Month Peak
Chainlink’s LINK token has experienced a significant surge, reaching a 24-month peak and achieving a market cap of $10 billion. This surge has been fueled by crypto whales accumulating over $50 million worth of LINK tokens in recent days.
Whale Moves Millions in LINK Tokens
An unidentified whale, potentially an institutional player, has been accumulating Chainlink’s LINK tokens. The whale has withdrawn 2.7 million LINK tokens from the cryptocurrency exchange Binance using 49 new wallets. One of these wallets has transferred over $9 million worth of LINK tokens in the past ten days.
Increase in Activity of Dormant Wallets
There has been a notable increase in the activity of previously dormant wallets, leading to a spike in the “Age Consumed” metric. This sudden circulation of old LINK tokens is believed to have contributed to the recent price surge.
Rise in Open Interest and Funding Rate
The rise in LINK’s price is accompanied by an increase in its open interest (OI) in the derivatives market, reaching a record high of $592.29 million. Additionally, LINK’s funding rate remains positive, indicating bullish market sentiment and higher demand for long positions.
Increased Adoption of Chainlink’s CCIP Technology
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) technology for tokenizing real-world assets (RWA) is experiencing increased adoption. The network has actively pursued partnerships with traditional firms and achieved integrations with blockchain projects.
Hot Take: Chainlink’s Surge Driven by Whale Accumulation and Increased Adoption
Chainlink’s recent surge can be attributed to the accumulation of LINK tokens by crypto whales and increased adoption of the network’s CCIP technology. This surge has propelled the LINK token to a 24-month peak and a market cap of $10 billion. The activity of dormant wallets and the rise in open interest further contribute to the bullish market sentiment. However, traders should be cautious as leverage positions increase the risk of liquidation in a potential downturn.
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