LINK led the altcoin troupe as investors steered their attention away from Bitcoin. Despite an overall decrease in trading volumes by more than 20% compared to the previous week, altcoins, demonstrating notable resilience, have contributed to a slight uptick in market caps. Among these, LINK has emerged as a standout performer, accompanied by other noteworthy coins such as Flare [FLR], Ronin’s RON, Bittensor TAO, and Render Network [RNDR].
The Chainlink token, in particular, has garnered favor among substantial holders and institutions. Lookonchain data reveals a conspicuous accumulation by a whale or institution, as evidenced by the withdrawal of 119,583 LINK [equivalent to $2.15 million] from Binance within the past hour. This strategic move suggests confidence and interest in the long-term potential of the token.
As the leading Oracle network in the blockchain space, Chainlink has not only outpaced the broader market but has also displayed impressive individual performance. Over the last 24 hours, LINK has experienced a noteworthy surge, marking a 5% increase in value and a striking 26% rise in the weekly chart. The 11-ranked altcoin boasts a 24-hour trading volume of $3.31 billion and a market capitalization of $10.21 billion.
With Bitcoin taking a backseat, LINK is diverging from the general market trend. A significant factor contributing to the altcoin’s upward movement is the activation of dormant wallets, previously inactive for an extended period. This sudden resurgence has led to the highest age-consumed spike of 5.38 billion [calculated by multiplying the coins moved by the number of days those coins had been dormant].
Chainlink: Insights into Dormant Wallets & FUD Dynamics
The reintegration of the token into circulation is believed to have played a pivotal role in the recent surge in its price. However, the question remains whether its price increase will sustain a more prolonged recovery or if it’s a transient phenomenon. Market analysts are closely monitoring two crucial indicators in the upcoming weeks to assess the token’s potential for sustained growth.
The initial metric involves closely tracking the movements of previously inactive wallets and analyzing their impact on the overall network’s circulation. The second metric entails vigilant observation of any signs of FUD [fear, uncertainty, doubt] that could trigger wallet liquidations, potentially contributing to further increases in LINK’s price.