Chainlink (LINK) Sees Surge in Accumulation and Staking, Price Rises
Rising Staking Volume in LINK – What’s Behind It?
A continuous accumulation of LINK has been observed in recent weeks. This could also lead to an increase in staking.
LINK Accumulation Increases
In the last two weeks, Chainlink has experienced an increase in accumulation, as data from Lookonchain shows. The analysis revealed that 83 newly created wallets have withdrawn more than 11 million LINK tokens from Binance. The total value of these withdrawn tokens was over 216 million dollars at the time of writing this article.
The examination of the net flow metric since February 5th consistently showed negative values. This suggests that there have been more outflows than inflows in recent weeks, which is consistent with the accumulation trend observed in the data from Lookonchain.
Increase in Staking Volume at Chainlink
With the ongoing withdrawal of Chainlink from the exchanges, holders are faced with the decision to either hold (HODL) or stake to maximize rewards.
An examination of the staking metric on DefiLlama revealed an interesting correlation – the staking volume began its ascent in early February, coinciding with the observed accumulation trend. On February 1st, the staking volume was about 680 million dollars. However, the volume has increased to over 878 million dollars at the time of writing this article. This suggests a possible connection between increased accumulation and an increase in staking activity.
LINK Holds New Price Range
Chainlink has shown a consistent upward trend in its price since the beginning of the month, as evidenced by its daily timeframe chart. The month started at about 17 dollars and has since steadily risen to the 20-dollar price range.
At the time of writing this article, it continued to trade around the 20-dollar mark, with a slight increase. However, the overall trend remained strong, as confirmed by its Relative Strength Index (RSI) which was above 60 at the time of writing this article.
Sources
The information in this article is based on data from Lookonchain, CryptoQuant, and DefiLlama. The price information was provided by Trading View.
