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- The Chainlink network has attracted more institutional investors led by DTCC and SWIFT, seeking to tap into its reliable web3 solutions such as CCIP.
- On-chain data shows whale investors accumulated over 10M LINK, worth more than $120M, in the past two weeks, bolstering its bullish recovery.
Chainlink (LINK), a reputable smart contract chain offering multi-chain capabilities, is well-positioned to enable the mass adoption of digital assets and web3 projects. According to Chainlink’s co-founder Sergey Nazarov, more institutional investors are using the Chainlink network to tokenize real-world assets (RWAs).
“RWAs have the ability to hold critical pieces of data that prove important things about the underlying asset much quicker and more effectively than traditional systems. Good examples are Chainlink’s usage to put NAV data on-chain for large CSDs and proof of reserve about the current state of an underlying asset,” Nazarov noted.
Growing Chainlink Ecosystem
The Chainlink network has grown to a vibrant web3 ecosystem backed by reputable investors and a loyal online community. In a bid to keep up with the growing needs of the web3 space, Chainlink’s core developers have been building the necessary infrastructure to enable seamless adoption of digital assets and smart contracts.
As we previously reported, the Chainlink network has forged several strategic partnerships with different institutional investors led by Circle, DTCC, and Swift, among many others. Earlier this month, Chainlink announced a strategic partnership with Fidelity International and Sygnum to bring Net Asset Value (NAV) data on-chain.
Rising Chainlink Whales Demand
The recent crypto capitulation fueled by the significant Bitcoin sales by the German government has drastically reduced as shown by the notable rebound of the fear and greed index. As a result, long-term holders have been taking advantage of the discounted crypto prices to accumulate more digital assets.
As we previously reported, Chainlink holders with more than 10k units added more than 10 million LINK tokens, worth more than $120 million in the past two weeks. As a result, around 52% of LINK’s total supply is currently held by long-term holders.
Image Source: Santiment
Is LINK Price Consolidation Over?
As the fear of further crypto capitulation drastically reduced in the past few days, the crypto industry surged more than 4 percent on Monday. Chainlink price rallied more than 5% in the past 24 hours to hover around $13.83 at the time of this report.
However, the LINK price rebound against the US dollar does not negate the downward trend that began earlier this year. Unless the LINK price consistently closes above the support/resistance level around $18, the altcoin will continue to drop towards $10, which coincides with the weekly 0.786 Fibonacci Extension.
Moreover, the mid-cap altcoin, with a fully diluted valuation of about $14 billion and a daily traded volume of around $300 million, closed below the 50 and 200 weekly Moving Averages (MA) for the first time since last October.
Nonetheless, the LINK price could rally to its all-time high if the long-term buyers continue to accumulate more amid the ongoing macro consolidation.
