The cryptocurrency market has had a very active day in the last 24 hours. Transfers tracked by blockchain data trackers revealed that millions of dollars of cryptocurrency were circulating between wallets. These transfers took place especially in Chainlink (LINK) and Ethereum (ETH) tokens and attracted the attention of investors. The reasons behind these mysterious transfers are a matter of curiosity. Experts evaluate that transfers involve different possibilities and may carry important signals about the market. In this news, we will examine the altcoin projects LINK and ETH transfers in detail.
LINK, one of the leading altcoin projects, is in the focus of whales
The cryptocurrency market has witnessed interesting transfers in the last 24 hours. According to monitoring by blockchain data tracker The Data Nerd, on July 7, 3 new addresses withdrew a total of 329,700 LINK tokens from decentralized exchanges (CEX). The value of this transfer is approximately US$4.18 million.
The rest of the news includes data dated July 6. According to the follow-up of the account named @ai_9684xtpa, 10,798 ETH accumulated in the last month from decentralized exchange giants Binance and Coinbase corresponds to approximately 32.54 million US dollars. The remarkable part of these transfers is that 4,472 ETH (approximately USD 13.41 million) was withdrawn to on-chain addresses in the last hour. It is estimated that these two addresses may belong to an institution and that it has deposited 3,616 ETH to the Ethereum beacon chain so far.
These transfers reveal the activity in the altcoin market. However, the reasons behind these transfers are not yet clear. Experts state that there are various possibilities for three new addresses in particular to attract large amounts of LINK tokens.
Why are transfers important?
Chainlink (LINK) network is known as a decentralized oracle network that provides reliable data to smart contracts. Therefore, the LINK token plays a critical role in the safe and error-free operation of smart contracts. Large LINK withdrawals from decentralized exchanges can be significant for several reasons. Firstly, this could increase investors’ confidence in the LINK token. Tokens withdrawn from decentralized exchanges are often transferred to on-chain wallets, reducing the supply of tokens on exchanges. This change in the supply-demand balance may lead to an upward movement in the token price.
Another possibility is that investors may turn to return-generating DeFi protocols such as staking or yield farming. Locking LINK tokens in these protocols can earn interest or additional tokens for the investor. Finally, these transfers may also be a sign of institutional investors entering the LINK market. Institutions can make long-term investments by purchasing large amounts of LINK tokens or choose to benefit from the DeFi protocols mentioned above.
ETH transfer and big investors
Another important information is that 10,798 ETH accumulated in the last month was transferred to on-chain wallets in the last hour. It is also noteworthy that the institution thought to be behind this transfer deposited some of the ETH it transferred to the Ethereum beacon chain. ETHs deposited on the Ethereum beacon chain are used in the Proof-of-Stake (PoS) consensus mechanism that ensures the security of the Ethereum network. This investment demonstrates institutions’ confidence in the future of the Ethereum network and their long-term investment strategies.
To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel
This news is republished from another source.
