Whales have been showing a lot of interest in Chainlink for the last few days. The interest seems to have been garnered due to an uptick in Chainlink’s social dominance.
Now, the question is- will increasing interest from the whales be enough to revive Chainlink’s declining market cap?
WhaleStats, an account that is dedicated to tracking large addresses in the crypto market, announced on 20 September in a tweet that the top 500 ETH whales are holding $37 million in LINK.
But it’s not just ETH whales that have been showing interest in this cryptocurrency, BSCWhales have been showing their interest as well with a holding of $6.7 million LINK.
Moreover, Chainlink has been causing quite an uproar in the social media landscape as well.
Chainlink’s social dominance has displayed some volatility over the past week. On 21 September, its social dominance saw a massive spike, and Chainlink was responsible for up to 3.56% of all social media conversations.
The public sentiment has been growing in a positive direction with the weighted sentiment metric at 1.283 at press time.
This indicated that the majority of the social media chatter surrounding Chainlink is more positive than negative.
Source: Santiment
Although there are many developments in favor of Chainlink, there are some things traders should keep in mind before investing in LINK.
Consider this, LINK’s volume has been depreciating since last week. It has gone down by 73.83% in the last seven days.
As can be seen from the image below, LINK’s market cap has been on a decline as well. It declined from $3.64 billion to $3.46 billion in the last week.
Furthermore, Chainlink’s MVRV ratio has also been in the red for the past few days which could be perceived as a bearish sign.
But the declining market cap hasn’t discouraged the team at Chainlink in the slightest. Notably, the development activity has been seeing massive growth hinting that the team at Chainlink has been working on updates and upgrades.
Source: Santiment
One of the reasons for the spike in development activity could be a result of developers keeping up with Chainlink’s increasing number of collaborations. Chainlink has been growing massively on both the NFT and DeFi front.
Web3 gaming system Nakamoto Games has partnered with Chainlink to use its VRF system to help power its Naka Punk NFT. In the DeFi aspect, Chainlink is also being used by the Horizon Protocol to help securely automate the distribution of staking rewards.
Despite the fact that Chainlink has been making a lot of progress lately, traders should keep in mind that Chainlink’s volatility has increased dramatically since the beginning of the month.
Source: Messari
Therefore readers are advised to do their research to get a better understanding of what the future will look like for LINK
