Whales signal: Large investors are selling this trending RWA cryptocurrency

Link of the chain (LINK) has been a trend year after year, driven by the real world assets (RWA) narrative, attracting retail investors and increasing the price. Meanwhile, Link of the chain The whales have apparently been decreasing their exposure to the token, likely selling their large holdings over time.

Finbold recovered this whale signal via premium data of Holy, tracking the US dollar value of Chainlink whales. Essentially, the metric considers a whale any address that has more than $2 million in sight of LINK's $10 billion market cap.

As noted, these holdings have fallen from $550.56 Million on June 4, 2023 to $464.65 Million at the time of publication. Notably, LINK was trading at $6.07 a year ago, more than double the current price at $17.6. This highlights an even larger drop in whale holdings measured in LINK, generating a relevant signal for the cryptocurrency market.

In contrast, Ethereum (ETH) whale stocks have increased throughout these 12 months, following the price trend year after year.

Chainlink (LINK) Whale USD balance unchanged. Fountain: Holy / Finbold (Barbosa Wines)

The real-world asset narrative was driven by BlackRock (NYSE: BLACK) growing interest in RWA tokenization. Interestingly, Larry Fink, CEO of BlackRock, mentioned that he sees great value in tokenizationand the company is support an investment fund within this asset class.

Chainlink benefits from this trend due to its leading oracle solution, which collects real-world off-chain data and transmits it on-chain.

However, the LINK token has no clear demand for people who interact with the chain. Its most well-known utility is to reward oracle node operators, which generates supply pressure but not market demand, as well as speculation.

So far, speculative demand has maintained the token's value, but whale activity may indicate that it is not sustainable in the long term. Recently, Chainlink was trending on Reddit with 545 mentions in 24 hours, highlighting retail interest in speculating on LINK.

Trending cryptocurrencies on Reddit. Source: Finbold

With the lack of clear demand, the buzz and rumors on social media is what drives LINK's price action. Traders who buy this token are essentially gambling in the hope that someone else will buy it at a higher price.

However, this behavior also highlights the inherent risk of such investments, as the market eventually runs out of willing buyers. When enthusiasm dies down and demand wanes, traders may continue to hold worthless assets, leading to significant financial losses.

Disclaimer: The content of this site should not be considered investment advice. The investment is speculative. When investing, your capital is at risk.

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