Chainlink: A renewed interest from these holders could lead LINK to…

  • Whales and sharks have shown massive interest in Chainlink in recent days
  • Chainlink has done many integrations across networks, but interest in some services has waned

Santiment, in a December 4 tweet, observed that whales had accumulated large amounts of the LINK token. Increased interest from large investors could induce a surge in LINK prices.

Lily Chain link [LINK] Price prediction 2023-2024

Large-scale accumulation

The tweet further said whale and shark addresses hold 1,000 to a million LINK increased significantly. At press time, the holdings of these addresses amounted to 26.8 million LINK. Otherwise, these large addresses accounted for nearly a quarter of Chainlink’s overall supply.

A reason for the growing interest of whales could be the growing number of Chainlink collaborations. On December 3, Chainlink said it had integrated with Ethereum and the BNB chain. Integrations ranged from Chainlink helping protocols with sourcing various types of data to randomizing mint rewards.

However, despite supplying its technologies to various protocols in Web3, a drop in demand has been observed for some of its technologies. According to data from Dune, demand for Chainlink’s VRF technology has plummeted. Additionally, the number of VRF requests on BinanceSmartChain has decreased over the past few months.

Source: Dune Analysis

Along with declining demand for its VRF technology, LINK’s business has also declined on-chain.

LINK activity decreases

The speed of LINK has dropped over the past month as the number of times LINK was traded between addresses has decreased. Along with this, the number of transactions of Chainlink has also decreased.

However, in terms of development activity, Chainlink has seen a spike over the past few days. This implied that Chainlink developers contributed more to the network’s GitHub. This could be attributed to the upcoming launch of staking on Chainlink.

Source: Santiment

It remains to be seen what impact whale interest will have on Chainlink and whether the launch of staking will prove beneficial for LINK holders. At the time of this writing, LINK was trading at $7.35. Its price had fallen by 1.31%, according to CoinMarketCap.

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