Chainlink (LINK) is drawing attention from crypto whales and institutional investors. This reflects growing confidence in the oracle token amid uncertainty in the broader crypto market.
Recent on-chain data show a strong increase in accumulation, as both individual whales and large fund managers expand their LINK positions.
Whales are accumulating Chainlink while Grayscale HODLs and Bitwise prepares for spot ETF launch
Data from Arkham shows a single whale withdrew 171,000 LINK (approximately $2.36 million) from Binance on Tuesday. These coins were added to an existing position of nearly 790,000 LINK built up over the past month at an average price of $12.72.
This large accumulation indicates long-term bullish sentiment. The investor is betting that LINK can perform better in the coming months.
There is also more speculative interest visible in the derivatives market. According to OnChain Lens, a newly created wallet has deposited $5 million in USDC on Hyperliquid DEX. This has opened financed long positions in LINK (5x) and DOGE (10x).
The combined position is now worth $28.2 million but shows a floating loss of approximately $600,000.
This shows that experienced traders are willing to bet on LINK, despite short-term volatility.
Institutional confidence and ETF approval drive LINK towards scarcity.
Institutional accumulation remains an important factor for the momentum of LINK. Grayscale's LINK Trust recently reached a new all-time high (ATH) in total assets under management. On SoSoValue it shows that this is nearly $90 million, with a current value of $87.15 million.
Furthermore, data on Coinglass shows that Grayscale has held 1.31 million LINK over the past two years. This demonstrates a 'diamond hands' strategy without any sales.
The combination of whale accumulation and institutional HODLing ensures that the number of LINK tokens on exchanges is historically low. According to CryptoQuant data, fewer tokens on exchanges often means scarcity. This can support the price and reduce selling pressure.
Also positive: Bitwise has received approval from the SEC to launch a Chainlink spot ETF (CLNK) on NYSE Arca, which will start trading this week. This marks the first direct step from Chainlink to the U.S. stock market.
The assets of the LINK ETF are held by Coinbase Custody and BNY Mellon. This gives investors access to LINK through a regulated product, without having to manage the underlying tokens themselves.
The launch of CLNK could lead to further institutional inflow and a larger base of LINK holders, which may drive the Chainlink price up. Despite this news, the LINK price at the time of writing has only increased by 0.8% to $13.84.
These developments together create a favorable climate for LINK.
Whale accumulation shows confidence among experienced traders.
Grayscale's long-term strategy confirms institutional confidence in the token.
The introduction of a regulated spot ETF allows more cautious investors to gain exposure to Chainlink. This could increase demand and further reduce liquidity on exchanges.
Now that the LINK supply on exchanges is historically low and both whales and institutions continue to accumulate, the market seems to be gearing up for a potential rise.
However, this bullish fundamental development towards sustained price growth depends on broader market conditions. An important component of this is investor interest in exposure to both leveraged and spot markets.