A cryptocurrency market downturn and Coinbase’s layer-2 solution Base led to tens of millions of dollars worth of Chainlink ($LINK) being moved by whales, resulting in the biggest spike in on-chain transactions for the decentralized oracle project in the last 90 days for Chainlink ($LINK).
LINK whales started moving their funds within minutes of each other, according to on-chain analytics firm Santiment.
Chainlink recently announced the launch of its Price Feeds on the testnet of Base, Coinbase’s layer-2 solution built on OP Stack, a development kit used by another layer-2 solution, Optimism.
One of the whale addresses mentioned in Santiment was reported by blockchain tracking service Lookonchain to have significant LINK transfers.
LINK’s non-circulating supply, which consists of tokens set aside by Chainlink, was transferred to a whale wallet, according to Lookonchain. LINK was transferred to Binance, where it could potentially be sold on the open market.
Although the motives behind these transactions are not clear, they could be a sign of a larger trend in crypto markets. As prices fluctuate, whales – individuals or entities who own large amounts of a specific cryptocurrency – may use the volatility to move their assets around.
Because LINK is one of the most popular cryptocurrencies and is used in a variety of applications across the decentralized finance (DeFi) ecosystem, the movements of these Chainlink whales could have an impact on the broader cryptocurrency market. These movements coincide with a broader crypto market downturn in which BTC and ETH have lost over 5% of their value in just 24 hours.
It is important to note, however, that these transactions may be part of normal market activity and are not necessarily indicative of a larger trend.