By Shelly Melancon (Switzerland)
Santiment, a on-chain analytics data vendor, revealed in a tweet that large cryptocurrency investors were able to buy a huge amount of Chainlink (LINK) just this last week. These large investors seem to have added an impressive 3.4% of the total Chainlink (LINK) supply to their holdings. This increases the amount of LINK in the crypto storage vault of these Chainlink whales.
The cryptocurrency market plunged generally last week, which affected many cryptocurrencies including major cryptocurrencies like Bitcoin, Ethereum, Cardano, Litecoin etc. LINK was not spared during this market plunge that drove the price of the crypto downwards. This plunge led a lot of nervous short-term investors to sell their LINK holdings in order to minimize their losses. However, this only resulted in a turn-over of LINK from minor short term investors to these cryptocurrency whales last week. These large Chainlink (LINK) investors are known to hold between one and ten million LINK in their wallets.
The recent plunge in the price of most cryptocurrencies can be attributed to the recent regulations on cryptocurrency by the Central Bank of China. These new regulations banned cryptocurrency transactions and mining operations in the country. This news caused panic in the cryptocurrency market. Prices of most cryptocurrencies have plunged since then.
Other possible factors that may have contributed to the recent downturn in the price of bitcoin include the decision by Tesla not to accept bitcoin as payment for its products citing the environmental effect of mining. This was different from the earlier stance of Tesla and Elon Musk to accept bitcoin as payment which caused a lot of excitement when it was announced and even an increase in price of bitcoin.
Chainlink Whales
The large Chainlink investors bought an impressive 62.02 million LINK, during the dip that affected many cryptocurrencies, last week. The 62.02 million LINK added corresponds to 3.4% of the total supply of Chainlink and is worth $1.45 billion.
This recent action by the Chainlink whales is in contrast to their behaviour last month in August, when it was noticed that they were not holding their LINK for a long time and were instead selling some to smaller investors. At that point in time, the price was quite volatile, so their action in August might be seen as expected given the circumstances. This volatility can be seen as on May 10, the crypto was valued $52.88, an all-time high. Whereas by July 20, it dropped to $13.97. Though the price has risen again since then, this just demonstrates the volatility that may explain the action of the whales last month.
Chainlink Partners With Cardano
Chainlink has been working on beneficial collaboration and partnerships with other blockchain platforms. It will be providing its oracles to these blockchain platforms. Recently it made an official partnership with Cardano and its oracles will be used by Cardano to create new advanced smart contracts. This was confirmed by Cardano on Saturday, September 25 when it announced the news during its Cardano summit 2021.
After such an announcement, the excitement could be expected to cause a rise in the price of Chainlink (LINK), however the rise in price was temporary, and it has been falling in price since then.
Chainlink (LINK) is an Oracle network that is decentralized and is able to allow blockchain to interact via smart contracts.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.