Whales are common with some digital assets, but it didn’t work out for LINK in the first place. In recent years this property has always been characterized by strong whale addresses. Hence, it is understandable why their activities are always a cause for concern.
At the time of writing, one such situation appears to be playing out in the ecosystem. It is time to understand and analyze the potential impact.
Lucky number 64 for 10 million LINK?
LINK’s performance in 2021 is not as explosive as it was in 2020 as the asset is outside the top 10. However, it continues to consolidate higher in the charts. Additionally, there may be some big moves in on-chain activity for now.
Supply distribution LINK | Source: Santiment
According to Santiment, 64 addresses with 1 million to 10 million LINK contributed 1.89% of the circulating supply. As shown in the graph, that amount is worth nearly $ 300 million at press time, with LINK trading at $ 30.
In addition, it is assumed that these addresses currently make up 18.01% of the total offer. The fact that such a large number are in a few wallets raises questions and the possibility of whale manipulation. On the contrary, this could be a bit unnecessary for the LINK ecosystem.
LINK & Wal: The perfect couple?
Unlike most large assets that face many manipulation issues during whale activities, the LINK address was used for such centralized HODLers from the start.
Percentage of supply held by the top 1% of addresses | Source: Glassnode
According to Glassnode, the LINK offer of the top 1% of addresses in the ecosystem has increased by up to 86%. It is also increasing steadily. Why shouldn’t traders worry about manipulation?
A major reason is that it never happened in the past. During LINK’s price spike from $ 1 to $ 20 in 2020, whales amassed assets in a frenzy. However, the price has never before fallen due to the sell-off and has consolidated further up the chart.
In addition, this accumulation has also been encouraged by the Chainlink and project communities. Especially since many protocols are now creating advanced smart contracts with the help of Chainlink’s Oracle Services.
Does that mean that there is never any manipulation?
Of course not. Any asset can fall victim to whales, not just LINK. A devastating market crash could pave the way for widespread liquidity, but LINK is less likely.
So don’t worry too much about LINK whales, at least if the market is doing well.
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According to AMBCrypto