Could this be why LINK’s staking volume has increased?

Journalist

Posted: February 19, 2024

• 83 new wallets have accumulated LINK in the last two weeks.
• Over 11 million LINK tokens have been withdrawn from Binance.

Chainlink [LINK] kicked off the month with a notable surge in its price. As its value increased, certain wallets have heightened their accumulation efforts.

Given the substantial withdrawal activity from exchanges, is there an observable uptick in LINK staking?

Chainlink accumulation intensifies

Over the past two weeks, Chainlink has experienced a surge in accumulation, as indicated by data from Lookonchain.

The analysis showed that 83 newly created wallets withdrew more than 11 million LINK tokens from Binance [BNB] during this period.

The total value of these withdrawn tokens was over $216 million at the time of this writing. 

Source: CryptoQuant

AMBCrypto’s examination of the Netflow metric since the 5th of February showed consistently negative values. At the time of this writing, the LINK exchange Netflow was over 262,000 in outflows.

This showed that there had been a greater outflow than inflow over the past few weeks, aligning with the observed accumulation trend in Lookonchain’s data.

Chainlink sees a rise in staking volume 

As the withdrawal of Chainlink from exchanges continues to rise, holders are faced with either holding (HODL) or staking to maximize rewards.

AMBCrypto’s examination of the staking metric on DefiLlama showed an interesting correlation—the staking volume began its ascent at the start of February, coinciding with the observed accumulation trend. 

On the 1st of February, the staking volume was about $680 million. However, the volume has surged to over $878 million at the time of this writing.

This suggested a potential connection between the increased accumulation and a rise in staking activity.

Source: DefiLlama

LINK holds a new price range

Chainlink has demonstrated a consistent upward trend in its price since the beginning of the month, as evidenced by its daily timeframe chart.

Starting the month at around $17, it has steadily climbed to the $20 price range. By the close of trade on the 17th of February, it recorded a 2.41% increase, reaching the new $20 price range. 

Source: Trading View

How much are 1,10,100 LINKs worth today?

At the time of this writing, it continued to trade around the $20 mark, with a slight increase.

The overall trend remained strong, however, as affirmed by its Relative Strength Index (RSI), which was above 60 at the time of writing.