Chainlink has been absolutely unstoppable in its recent rally with the LINK price shooting another 10% to $14.85 as of press time. Interestingly, the LINK price has surged close to $15 for the first time in 19 months. With this Chainlink has extended its weekly gains to 25% and monthly gains to a staggering 90%.
Strong Chainlink Accumulation
On-chain data provider Santiment reported that the remarkable surge of Chainlink shows no signs of slowing down, with the 12th largest cryptocurrency by market capitalization continuing to outpace the rest of the crypto sector. Dormant tokens are entering circulation, and wallets holding 10,000 to 10 million $LINK have historically been accumulating.
Analysts have already started giving free Chainlink price targets of $20. However, before that, the LINK price faces a crucial resistance at $18. Amid this mammoth price rally, the altcoin has climbed multiple ranks over the past few weeks and is now the 12th largest cryptocurrency with a market cap of just over $8 billion.
Growing Institutional Participation
Interestingly, there’s a strong sign of growing institutional participation in Chainlink during this current rally. GLINK, shares in Grayscale’s Chainlink Trust, have surged to a staggering 200% premium compared to the spot LINK markets.
Over the past week, prices of Grayscale Chainlink Trust (GLNK) have skyrocketed by almost 100%, closing at $44 as of date, a substantial increase from the October 31 level of $21. Notably, each GLNK share represents only $12 worth of LINK, making it nearly three times more expensive than the actual value of the assets it holds.
The substantial spread was initially brought to the attention by ChainLinkGod, a prominent influencer and Chainlink community ambassador, on November 7. The data illustrates that the spread between GLINK and LINK has expanded from around 100% to 200% during the recent Chainlink rally.
Grayscale Chainlink Trust $GLNK trading at a 200%+ premium over spot 🤔
$39 per share, with 0.93482160 $LINK per share pic.twitter.com/0dxljSDzQ8
— ChainLinkGod.eth (@ChainLinkGod) November 8, 2023
The significant difference between GLINK and LINK prices is attributed to the doubling of the total value locked in GLINK, reaching approximately $4 million. CoinShares reported that the product has attracted $2 million worth of inflows in the past seven days. It’s essential to note that Grayscale Trust’s shares are securities, and access to them is exclusively available to sophisticated investors. ChainLinkGod added:
“While the AUM of $GLNK is only ~$4M, it’s interesting nonetheless to see the demand spike on a product geared towards institutional investors”.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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