Chainlink Top 1% Keeps Accumulating As Total Transfer Volume Keeps Dropping

CryptoMode chainLink Price LINK on exchanges Chainlink Trust LINK

Analyzing the different cryptocurrency ecosystems will often yield surprising statistics. Chainlink, for example, notes an ongoing decrease in total transfer volume for several weeks. However, the LINK “whales” continue to accumulate without missing a beat. 

Chainlink TTV Drops A Bit

After noting a substantial increase in total transfer volume throughout 2019 and 2020. Chainlink seems to head in a different direction lately. It is not uncommon to see the TTV drop every now and then, as no network can operate at full throttle every day of the year. In fact, the LINK total transfer volume goes through large swings regularly.

What is remarkable in this instance is how the decline seems to be more gradual. This may be a sign of things to come for the network in the future. The data oracles provided by this blockchain network continue to gain popularity, and a new spike in TTV can occur at any given moment. If and when that will happen exactly remains undetermined. 

CryptoMode Chainlink TTV
Source: Glassnode

Even with this dip in place, the seven-day average remains well above 15 million LINK. From a value perspective, that is a more than respectable amount. It is still an improvement from the 7.823 million LINK in volume recorded in mid-December 2020. Overall, the growth curve remains intact in this regard.

It is always difficult to determine how a network may evolve at any given moment. For Chainlink, there are many things going on which may influence overall network statistics. This ongoing TTV decrease isn’t a cause for concern yet, as there will always be network activity.

Whale Addresses Keep Accumulating

When the value transferred over the network declines, it is pertinent to dig a bit deeper. Looking at the top 1% addresses holding LINK, a notable increase is visible. A new three-year high has been recorded in this segment. As such, 82.299% of the LINK supply is currently held by the top 1% addresses. One can interpret this as a sign of further accumulation, although other factors are at play. 

CryptoMode LINK top addresses
Source: Glassnode

More specifically, the amount of LINK in smart contracts is also rising. This will help pad the numbers for the top 1% addresses. As LINK becomes a more prominent asset in the DeFi scene, this growth is easy to explain. 

Moreover, some developments may take place behind the scenes to warrant an increase in LINK holdings by the top 1%. These addresses also include exchanges and DEXEs and may not necessarily represent individual users. 

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