Despite the ongoing market downturn, wealthy cryptocurrency investors and institutions have been scooping up a sizeable amount of Chainlink LINK/USD lately.
What Happened: According to on-chain tracking platform Lookonchain, as many as 90 fresh wallets withdrew 6.72 million LINK tokens, worth $86.7 million, from cryptocurrency exchange Binance, in recent weeks.
Large accumulation by whales is typically construed as a bullish signal for a cryptocurrency.
Like the broader market, LINK has also been under significant downward pressure, shedding 12% of its value over the week, and more than 22%. It's not surprising for institutional investors to dip buy assets that they believe have a high long-term upside potential.
See Also: Spot Ethereum ETFs Could Launch In A Week Or Two, Says ETF Analyst Nate Geraci: ‘How Quickly Will SEC Turn These Around?’
Why It Matters: The aforementioned observations were backed up by data from IntoTheBlock. In the last 24 hours, LINK's whale transaction volume surged 55%, while exchanges witnessed negative net flows, meaning that more LINK left exchanges than entered.
LINK is the native token of the decentralized oracle network Chainlink and has garnered significant hype due to the growing tokenization of the real-world assets narrative.
Chainlink serves as a bridge between the off-chain and on-chain worlds, thereby playing a key role in the growth of the decentralized financial category.
Price Action: At the time of writing, LINK is exchanging hands at $12.74, down 1.22% in the last 24 hours, according to data from Benzinga Pro.
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