Despite Chainlink’s current price struggles, whale activity remains robust. Blockchain analytics firm Santiment reported that “millionaire wallets” associated with the Oracle network have significantly increased their holdings amidst market downturns.

Also Read: Chainlink price prediction 2024-2030: A strong buy sentiment for LINK?

According to Santiment’s data, addresses holding 10,000 to 1 million LINK coins have increased their holdings by around 5% since June 24 to 207.29 million, an eight-month high. This means this cohort of investors acquired roughly $9.2 million in coins during the reporting period.

Over $110 million in Chainlink tokens were withdrawn from centralized exchanges

Data from IntoTheBlock further corroborated this whale’s accumulation. Per the blockchain intelligence platform, crypto investors pulled the Oracle network’s LINK token from centralized exchanges, resulting in a negative flow of around $110 million.

The firm stated:

“Such activity is typically associated with an accumulation phase, indicating that investors are moving LINK off exchanges and into long-term holdings.”

Chainlink LINK Exchange Withdrawal (Source: IntoTheBlock)

Further insights from IntoTheBlock show that the number of LINK addresses that qualify as whales now stands at 503.56 million LINK, which is 50.36% of the supply. Other small-scale investors hold 189.73 million, while retail traders have 306.73 million.

Historically, investors moving cryptocurrencies from centralized exchanges into their wallets is a sign that they want to hold on for a long time. This, coupled with the broader accumulation trends for LINK, suggests that a price rebound for the token could happen soon.

What is driving LINK’s accumulation?

The accumulation of LINK whales and sharks comes at a time when LINK’s prices have been declining. The token has fallen by more than 21% in the last 30 days, dropping to $12.62. Whales purchasing during this decline suggest that LINK might be undervalued and are buying the dip. Its market value to realized value (MVRV), which was around -11.08% a few days ago, also supports this assertion.

Chainlink’s MVRV (Source: Santiment)

The MVRV ratio is the difference between an asset’s current market cap and the cost of acquiring all the coins in circulation. When it is below zero, which means the market value is below average price, it is considered undervalued and historically represents a bottom and a time to buy.

Meanwhile, the idea that LINK is undervalued is also a result of the growing adoption of the Chainlink protocol. It recently launched Data Feeds, a decentralized and reliable data source on the Ethereum Layer-2 network StarkNet and DeFi protocol. Interport Finance is joining Chainlink’s BUILD program.

Also Read: Chainlink (LINK) whales also buy the dip, accumulating coins during the latest correction

Additionally, the Oracle provider continues to score pivotal partnerships with traditional financial institutions, which are increasingly relying on its platform for their tokenization efforts. Recently, the firm partnered with asset manager Fidelity and digital asset bank Signum to bring the Net Asset Value (NAV) data of Fidelity Institutional Liquidity Fund on the chain.