As the crypto market continues to see leading cryptocurrencies trading sideways amid persisting market troubles, a large crypto deposit involving 722,416 Chainlink has been spotted by the popular on-chain monitoring firm, Lookonchain, according to a recent X post.
A whale dump?
According to data provided by the source, a whale identified with the wallet “0x33f7” has deposited large amounts of Chainlink, worth a massive $11.11M, on the world’s largest crypto exchange, Binance. This massive crypto transfer has raised eyebrows among market participants, as it suggests a sell-off attempt by a large Chainlink holder.
The deposit history provided by the source revealed that the same whale had initially deposited 100 LINK tokens worth $1.54k to the same exchange a minute before the large transaction was conducted. Thus, both transactions stunned the leading exchange in less than 3 minutes.
At the time of the withdrawal, the price of LINK was trading at around $15.4 per token, showing bearish signals as the broad crypto market remained highly volatile.
Chainlink in red
Amid the distressing market condition, Chainlink has remained in the red zone, showing a decrease of 0.53% over the last day. Nonetheless, data from CoinMarketCap shows that the price of LINK has held steady since the time the transaction was executed till press time, at around $15.47.
Amid the distressing market condition, Chainlink has remained in the red zone, showing a decrease of 0.53% over the last day. Nonetheless, data from CoinMarketCap shows that the price of LINK has held steady since the time the transaction was executed until press time, at around $15.47.
The trading dynamics of Chainlink over the last day have raised concerns that investors might be increasingly dumping their tokens on exchanges to sell. While LINK has seen its market capitalization fall by a decent 0.47% to about $10.17B, the token has seen its daily trading volume take the opposite direction as it surged massively to a whopping $457.72 million — a substantial increase of 45.76% over the last day.
This decline in Chainlink’s value and an increase in its trading activity suggest that holders are actively trading the tokens, but not for buying purposes. Usually, this indicates that investors might be losing confidence or taking profits.
Thus, the large $11.11 million LINK transfer to Binance might be one of those attempts to move tokens from wallets to exchanges to liquidate them.
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