Recent on-chain data indicates a significant increase in accumulation of Chainlink (LINK) tokens among mid-tier and large wallets, with current holdings reaching levels not seen in months. This uptick in activity comes as spot LINK exchange-traded funds (ETFs) approach a noteworthy milestone of $100 million in net assets, reflecting growing institutional interest in the asset despite a recent price dip.
As of the latest data, LINK is trading at $89.95, reflecting a 5.5% decline during the day. Insights shared by Santiment reveal that wallets possessing 1,000 LINK tokens or more have surged to a 16-week high, marking the most substantial accumulation since early December. This activity suggests that these larger holders are actively buying LINK, potentially anticipating a price breakthrough.
Santiment highlighted the stability of LINK’s price range between $9 and $10 since February, indicating that significant investors are gradually re-entering the market with bullish sentiment. As noted by industry experts, the rising enthusiasm for tokenization, underscored by statements from prominent figures such as BlackRock CEO Larry Fink, positions Chainlink at the forefront of this emerging trend. Fink likened tokenization’s potential impact on finance to that of the internet three decades ago, suggesting that this could spur mid-tier and large wallets to prepare for a possible price surge related to an increase in tokenization activities.
In addition to the surging interest in LINK among wallets, spot LINK ETFs are also making headlines. Current data from SoSoValue shows that these ETFs have accumulated $93.74 million in net assets, falling just 6% short of the $100 million threshold. The total amount of LINK tokens held within these ETFs constitutes approximately 1.42% of Chainlink’s total market capitalization, which stands at $6.36 billion.
Since their inception, these ETFs, comprising only two products authorized by US regulators, have attracted nearly $98 million in cumulative net inflows. Among these, the Grayscale ETF has seen inflows of $82 million, while Bitwise has accounted for $15.82 million. Notably, last week marked the highest weekly inflow in six weeks for LINK ETFs, totaling $4.6 million.
As institutional demand for Chainlink rises, the prospects of breaking through the $10 resistance level appear increasing, further solidifying LINK’s position as the fifth-largest US-listed ETF, trailing only Bitcoin, Ethereum, XRP, and Solana in terms of asset value. This context of rising investment and potential price movement underscores the growing traction Chainlink is gaining in both retail and institutional circles.
