Chainlink's exchange outflows reached a record high in 2025, drawing the attention of market observers. Data from Binance indicates a sharp increase in large LINK withdrawals in May.
Despite the asset's trading price being approximately 66% below its previous all-time high, analysts believe this trend suggests that certain investors are moving assets off exchanges for long-term holding.
The top ten outflow transactions on Binance show growing investor interest. In May, the average daily outflow exceeded 3,600 LINK, with several trading days recording single-day withdrawals surpassing 5,000 LINK, marking the highest outflow levels recorded on the platform this year.
Large outflows typically indicate that investors are moving assets into external storage, a behavior that often reflects a preference for holding rather than short-term trading. Although the broader crypto market continues to face challenges, some early signs of recovery have gradually emerged since the local low in early February.
The outflow of assets has reduced the available supply on exchanges. Over time, as buying activity increases, the diminished exchange supply may alter market dynamics.
Since the local low in early February, the overall crypto market has shown some signs of recovery. The total market cap, excluding Bitcoin, Ethereum, and stablecoins, has risen by over 15% during this period. Assets like HYPE have performed notably well, surging nearly 190% from February's lows. However, most altcoins, including LINK, have yet to exhibit similar price momentum.
The outflow activity of LINK is particularly noteworthy because its price trend has remained stable. Accumulation within a sideways price range is often overlooked by the broader market. During such periods, monitoring exchange flow data can provide early signs of capital quietly moving, making the current outflow trend of LINK worthy of close attention.
Whale Accumulation Addresses Reach New Highs
On-chain data provides further context for the outflow situation. According to a post by @WhaleFactor, the number of wallets holding at least 100,000 LINK has risen to 805 addresses, a new high, with this figure increasing by 8% in less than two months. The growth of these large holders' addresses occurred as prices approached $9.55.
The timing of this accumulation is noteworthy. Large entities appear to be taking advantage of the price stagnation to build positions.
Stable price conditions reduce competition, allowing gradual accumulation to go unnoticed. This pattern aligns with a strategic long-term holding approach rather than short-term speculation.
A single data point is often insufficient to confirm a trend change. However, when exchange outflows coincide with on-chain wallet growth, the weight of this combination becomes more significant. Currently, both signals point in the same direction for LINK.