Blockchain analytics firm Nansen has found in a new report that professional investors are attracting a particular altcoin project to their wallets. Smart money may have new plans as funds flow from exchanges to wallets.
Professional investors divert altcoin funds from exchanges
According to Nansen’s report, wallets described as “smart money” are pulling Chainlink (LINK) assets from crypto exchanges. Chainlink is an Ethereum-based oracle platform. The altcoin project, which specializes in providing external data to blockchain protocols, announced that from Tuesday it will open its pools for qualified users to stake LINK. According to the official web post, “Staking provides an opportunity for Chainlink ecosystem participants to earn rewards by backing security guarantees and user assurances of oracle services with staked LINK.”
Nansen now says that with the announcement, institutional investors are turning to staking pools. The LINK price also managed to price this demand upwards. It rose 28% from $5.60 to $7.19 in two weeks. At the time of writing, it is trading at $6.87, down 4.5% in the last 24 hours. Negative trend dominated the overall market.
Chainlink staking dates
cryptocoin.com As we reported, early access to Chainlink Staking v0.1 became active on December 6th. General access opens on 8 December. According to the official announcement, “Chainlink Staking v0.1 will initially be limited to 25 million LINK. There will be plans to scale overtime up to 75 million LINK.” According to Nansen, the amount of LINK to exchanges has dropped markedly in the past seven days. “Smart Money” net flow fell to about 67,000 LINK ($486,000). This means that the money withdrawn from LINK exceeds the deposit.
Meanwhile, Nansen considers a “historically profitable” wallet to be “smart money.” That is, it must meet at least one of several conditions. For example, earning at least $100,000 by providing liquidity to the DeFi protocol, SushiSwap and Uniswap. Earning at least more than or equal to five times the profit on the NFT collection printed in the last 60 months. Along with that, making multiple trades in a single transaction that generates profits on decentralized exchanges.
Altcoin supply on exchanges is falling
According to the data, the number of LINKs pending in Binance wallets decreased by 7.1 million tokens during the period. The combined LINK balance of Cryto.com, Kraken, OKX, Coinbase and Gemini exchanges dropped by approximately 951,000 coins. Among all wallets, LINK has had a massive negative outflow of roughly $38.9 million from exchanges over the past seven days. Investors withdraw the cryptos they plan to keep into their wallets for security and long-term retention. Additionally, Nansen identified 12,731 new LINK wallets with $261.3 million in entries in 15 days.
Nearly 50 addresses collected by on-chain researcher Lookonchain received 14.3 million LINK worth $107.6 million from Binance in the last 12 days. According to Lookonchain, a particular whale (0xC54) sent 7,000 LINK to 65 different wallet addresses. Thus, 455,000 LINK or $3.4 million worth of transfers were made. Lookonchain says that 0xC54 “seems to be getting ready for staking.” Because early access to Chainlink’s v0.1 staking pool will be able to stake a maximum of 7,000 LINK per address.
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