LINK has seen an increase in whale accumulation over the past eight months. However, on-chain assessments revealed some calm that could make it difficult for the price to grow.

Leading Oracle Chainlink [LINK] has seen an increase in whale accumulation, Sanitation unveiled on January 18. At the time of writing, more than 460 addresses had at least 100,000 LINK tokens. Interestingly, amid the severe bearishness that characterized the 2022 trading year, whale accumulation increased as the number of whale addresses grew to levels last observed in 2017.

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Since May 2022, the number of whale addresses with at least 100,000 LINK tokens has increased by more than 26%. Typically, whale accumulation of this volume had a significant impact on the market as the actions of these large holders can influence the price of a crypto asset to rise.

However, the downturn that plagued the general market in 2022 led to a consistent fall in the price of LINK within the winter 12-month period.

Flashing red light?

While LINK’s value is up 23% since the start of the year, reflecting the overall growth in the market, an analysis of the cryptocurrency’s on-chain performance has raised some concerns.

According to data from Santiment, new demand for LINK has grown 51% since the beginning of the year. However, the number of unique addresses already traded daily has dropped by 56% since January 4.

Source: Sentiment

What do the stats suggest for Chainlink?

An increase in new addresses for a crypto asset alongside a decrease in daily active addresses could indicate that while more people bought the cryptocurrency, they may not be actively using it or participating in transactions on the network.

It could also mean that the new addresses were created for speculative or long-term purposes, rather than everyday use.

Despite the price increase in the past two weeks, LINK has remained undervalued since June 2022. According to Santiment, LINK’s MVRV has been negative ever since.

Source: Sentiment

How much are 1.10.100 LINKs worth today?

An MVRV value between 0 and one for a crypto asset implied that holders would likely incur a loss if they sold their assets at the current price. This was the case for LINK holders as they have mostly sold at a loss since June 2022.

Finally, some calm was also observed on the Chainlink network, as confirmed by a look at Alt’s Mean Dollar Investment Age statistic. Since the end of June 2022, this measure has started an upward trend and has lasted for a long time, meaning that long-held coins have not changed hands.

Source: Sentiment

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