Chainlink (LINK) Surges Over 48% and Overtakes Dogecoin in Market Cap
Chainlink (LINK) has emerged as one of the best-performing cryptocurrencies, outpacing the overall market with three weeks of strong positive price activity. Since January 25, LINK’s price has surged over 48%, surpassing $20 on February 11 for the first time since February 2022.
During this price surge, on-chain data has revealed consistent accumulation by whales. In the past five days alone, one whale has accumulated $83.6 million worth of LINK.
Chainlink’s impressive price movement has propelled it to overtake Dogecoin in terms of market capitalization. Currently ranked as the 10th largest cryptocurrency, LINK’s market cap stands at $11.85 billion, while DOGE’s market cap is $11.46 billion. The recent surge in LINK’s price and market cap can be attributed to whales and investors accumulating the token.
Data from IntoTheBlock shows that whale transactions for LINK exceeding $100,000 totaled more than $1.29 billion in the past seven days. Additionally, total exchange outflows of LINK have far surpassed inflows during the same period, indicating a prevailing holding sentiment among traders.
One whale has been withdrawing substantial amounts of LINK from crypto exchange Binance. Within the past five days, a total of 4,556,684 LINK (equivalent to $83.6 million) has been withdrawn and distributed among 55 new wallets. Although the outflow is spread across multiple wallets, the withdrawal pattern suggests that a single entity is responsible for the accumulation.
In terms of price, Chainlink is currently trading at $20.21. While it remains up by 9% and 36.13% in the past seven and 30 days respectively, the rate of increase appears to be slowing down. In the last 24 hours, LINK has corrected by 2% from its yearly high of $20.63.
On a broader scale, the crypto market is experiencing gains, as most cryptocurrencies witnessed inflows led by Bitcoin last week. Even Dogecoin experienced an inflow, resulting in a 7.3% spike in price from 0.0776 to 0.08327. Dogecoin is currently trading at $0.08046.
With LINK’s market cap currently $390 million higher than DOGE, continued accumulation of LINK by traders could further widen the gap between the two assets.
Analyst comment
Positive news: Chainlink (LINK) has been performing well, surging over 48% since January 25 and surpassing $20 for the first time since February 2022. Whales have been consistently accumulating LINK, leading to its market cap overtaking Dogecoin. The accumulation by traders and the withdrawal of significant amounts of LINK from Binance suggest confidence in the token. However, the rate of increase in LINK’s price appears to be slowing down.
Market analysis: With continued accumulation of LINK, the market is likely to see a widening gap between Chainlink and Dogecoin, with LINK’s market cap surpassing DOGE by a larger margin.
