Chainlink Whales Move Millions in Largest Transaction Spike This Year: Here’s What’s Happening
Decentralized oracle platform Chainlink ($LINK) has recently seen its largest spike in whale transactions so far this year, with over 2,600 transactions worth $100,000 each occurring over a short period of time, ahead of the launch of Chainlink Staking v0.2.
As pointed out by popular cryptocurrency analyst Ali Martinez, there was recently a significant spike in large whale transactions for the decentralized oracle platform, with IntoTheBlock data showing that over the last six months these spikes precede a rise in LINK’s price.
#Chainlink | Yesterday, $LINK witnessed its largest spike in whale transactions for the year, with over 2,600 transactions exceeding $100,000 each! pic.twitter.com/IoaxjEZjJv
— Ali (@ali_charts) November 29, 2023
The price of Chainlink’s native token has moved up over 30% over the past month and over 160% so far this year amid a wider cryptocurrency market recovery that saw the price of the flagship cryptocurrency Bitcoin moved up nearly 130% year-to-date.
Chainlink also saw a significant spike of 430% in its daily transactions from its monthly low, along with a substantial accumulation coming from major token holders. On-chain analytics firm Santiment recently reported that Chainlink has “quietly had a massive amount of older coins moving wallets today.”
These movements, according to Santiment, are often followed by significant price movements.
🔗📊 #Chainlink has quietly had a massive amount of older coins moving wallets today. Big older coin movement typically is followed by big price movements, which is what occurred September 15th, resulting in a +31% $LINK price climb the following 2 weeks. https://t.co/Cb1TGg3hvG pic.twitter.com/Vh7zYrE6oa
— Santiment (@santimentfeed) November 29, 2023
The blockchain analytics firm discovered a link between the increases in LINK prices and the rises in the movement of inactive tokens, called ‘Age Consumed’ levels. After the ‘Age Consumed’ levels reached 8.34 billion on September 15, with many dormant LINK tokens being transferred, the price went up by nearly 31% in the next two weeks.
Chainlink’s massive whale transactions and positive price movements come ahead of the introduction of Chainlink Staking v0.2. This update significantly increases the staking pool capacity to 45 million LINK, representing 8% of the total tokens currently in circulation.
This expansion aims to make Chainlink Staking more accessible to a wider array of LINK token holders and is in line with Chainlink’s Economics 2.0 initiative, which focuses on enhancing the network’s security.
The staking feature, first rolled out in December 2022, was designed to improve the functionality of the token and enabled LINK holders to participate in supporting the performance of Oracle services, earning rewards in the process and contributing to the overall security of the network.
Featured image via Pixabay.
