Chainlink (LINK) Has Outperformed the Rest of the Sector with a Sharp Rally During the Past Week. Here's What's Driving This, According to On-Chain Data.

Chainlink Price Has Been Sharply Moving Up Recently The past few weeks have been an excellent time for LINK investors, as the asset has almost tripled in value

Chainlink (LINK) has had a stellar week, outperforming the rest of the sector with sharp bullish momentum. As of now, the asset trades at gains of 22%, making it the best performer among the top cryptocurrencies by market cap.

Chainlink Price Surges Past $28 as Best Performer Among Top Cryptos

The past few weeks have been great for LINK investors, as the asset has managed to almost triple in value from the start of November. At the beginning of this week, the coin did face a bit of a setback from its rally. However, the bullish momentum has already resumed in the last couple of days.

Related Reading: Chainlink (LINK) Price Surges 20% In A Week, What’s Next?

At the time of writing, Chainlink is up almost 12% at a price of $28.1. During the past 24 hours, trading volume has also surged by 17%. The asset is now performing better than the rest of the sector.

In the past seven days, the coin has managed to climb up by more than 22%. This makes Chainlink the best performer among the top ten cryptocurrencies by market cap.

Chainlink now ranks as the 12th largest cryptocurrency in the sector. It is closely following Shiba Inu (SHIB), which sits just above LINK in the top ten. Among the top assets, Avalanche (AVAX) is next in line for Chainlink to beat. However, AVAX still has a market cap that is $3.5 billion higher than LINK’s.

As for what has been fueling Chainlink’s bullish momentum, perhaps on-chain data can provide some hints.

LINK Sharks And Whales Have Been Accumulating Heavily

In a new post on X, on-chain analytics firm Santiment has discussed how the behavior has differed between the small and large entities on the LINK network recently.

The indicator of relevance here is the “Supply Distribution,” which keeps track of the total amount of Chainlink that the members of a given wallet group are holding right now. In the context of the current topic, the two address ranges of interest are 0 to 100,000 coins and 100,000+ coins. At the current exchange rate, the 100,000 boundary between the two groups converts to about $2.8 million.

Addresses who hold greater than this value are considered the key investors of the market, known as the sharks and whales. Thus, the Supply Distribution for the group tracks the behavior of the large investors.

Now, here is the chart shared by the analytics firm that shows how this indicator compares between the sharks and whales and the regular investors.

As you can see from the above graph, the small Chainlink investors have been selling during the last couple of months, potentially because they didn’t think LINK would manage to turn itself around.

The sharks and whales, however, smelled the opportunity and bought a total of 5.69 million coins from this group. As Santiment explains, “Throughout the history of crypto, large wallets scooping up coins from impatient or panicked retail traders is typically a recipe for market cap rises.”