Chainlink whales have significantly increased their LINK holdings. This comes after a notable reduction in the token balance on crypto exchanges, indicating increased bullish sentiment.
On-chain data provider Santiment revealed that the 200 largest LINK wallets have recently increased their holdings by more than $50 million. These addresses have cumulatively accumulated 746.57 million LINK tokens, valued at approximately $11.84 billion.
Chainlink whales continue buying
This wave of accumulation coincided with a notable decline in the LINK balance on exchanges. A drop in the foreign exchange balance is generally considered a bullish signal, suggesting a shift towards long-term holding and less selling pressure.
On-chain data confirms that the LINK supply on exchanges has plummeted to around 102 million LINK tokens, the lowest point in over a year.
Chainlink Whale Exploits. Source: Sentiment
Additionally, Chainlink’s v0.2 update has generated new interest in the ecosystem. The data shows that users have staked almost 20 million LINK tokens out of the 40.87 million limit.
Read More: Chainlink (LINK) Price Prediction 2023/2025/2030
These metrics, combined with the current positive sentiments permeating the market, have resulted in an increase in LINK price. Chainlink has demonstrated a remarkable 189% price growth so far this year compared to Bitcoin’s 139% rise.
LINK Price performance. Source: TradingView
During the period, the network’s Cross-Chain Interoperability Protocol (CCIP) enjoyed strong adoption by major traditional institutions, including global financial messaging network Swift and South Korean gaming giant Wemade.
“Chainlink is a platform that has now gone far beyond being the leading source of decentralized data, becoming a leading method for minimized off-chain trust calculation and now on its way to becoming the leading cross-chain connectivity standard.” both in Web3 and TradFi. /Banks,” said Chainlink co-founder Sergey Nazarov.
Bug detected in Chainlink price feed
Despite the positive on-chain activity, Silo Labs reported an error in Chainlink’s wsETH/ETH price on Arbitrum, leading to the liquidation of five positions. The error was caused by two major operations executed on Balancer v2 around 03:00 UTC on December 2nd.
“These transactions were quite large and could have been taken into account by data provider Chainlink’s VWAP calculation on Arbitrum. The reported price could have been representative of the volume-weighted market at the time,” Silo Labs said.
Chainlink price feed error. Source: Silo Laboratories
Silo Labs assured that the isolated error does not pose any systemic risk. Even so, the platform promised to reimburse affected users for any penalties incurred.
“Fortunately, Silo’s liquidator caught the liquidation before the other liquidators and received the liquidation sanction. We will refund the penalty to affected users. It’s the least we can do for them. Please reach out if you have been affected,” Silo Labs added.
Silo Labs is an isolated lending marketplace on Ethereum and the Arbitrum layer 2 scaling solution.
