There has been an accumulation of 47.31 million LINK tokens by whales since March 3 this year. According to Santiment, the top investors with £0.89 million to £8.86 million in LINK have been on an accumulation spree since the start of the bear market of 2022.
Chainlink (LINK) whales’ accumulation of the asset for the aforementioned time period amounted to around £277 million.
The altcoin had not been able to perform better than its 5.03% decline in the past thirty days despite all this accumulation. At the time of writing, LINK was changing hands for £5.87.
As there may be more to take into account than just price, especially given the current market conditions, retail investors’ behavior holds special importance.
According to Glassnode’s analysis of the active addresses, not many retail investors have recently boarded the LINK train. There were 1,810 daily active addresses as of October 20. However, there had been instances during the time that the whale had begun to amass when the number of active addresses spiked.
On June 30, for instance, there was a surge to 6,490, with 4,948 more on September 30. Few LINK senders and receivers have recently been active at the current rate. Therefore, it might have played a role in the current slowdown in network growth.
Furthermore, LINK has not recently had a significant effect on DeFi. Glassnode revealed that, as of press time, the supply percentage of smart contracts—which had a significant growth from June 25 to June 28—was just 56.72%.
This percentage was the reason why the supply of LINK held by smart contract platforms has only been constant since October first week.
In addition to the limited supply, LINK hasn’t generated any significant returns for investors. Its thirty-day Market Value to Realised Value (MVRV) ratio was -10.39%, according to Santiment.
The MVRV ratio revealed that investors made modest gains around 17 October after going below the neutral mark on 9 October.
Despite the fact that the MVRV ratio appeared minimal, Investors had experienced losses because the realised value was greater than the market value.
The coin had not seen much buying or selling recently. According to Santiment figures, the one-day circulation had decreased 50% over the past four days to 2.08 million at the time of writing.
Investors may need to set aside their expectations of a short-term gain in light of the four-hour chart. This is based on the movement the Directional Movement Index (DMI) recorded.
The DMI indicated that LINK sellers at 26.77 had a greater advantage than buyers at 9.12.
Meanwhile, the Average Directional Index (ADX), with value significantly higher than 25 at 32.22, supported a protracted stay in the reds.