Chainlink (LINK), the leading oracle network that supplies data to smart contracts, is showing a striking divergence. The token has dropped more than 70% from last year’s peak. However, Grayscale Investments’ holdings have climbed to a new high.
Additional data points highlight growing institutional confidence in the project’s long-term potential, despite persistent short-term selling pressure.
Grayscale Holds More Than 5 Million LINK in 2026
According to data from blockchain analytics platform Arkham Intelligence, Grayscale’s LINK balance surpassed 5 million tokens in February 2026. The firm currently holds approximately 5.258 million LINK, valued at more than $43 million.
The data shows that LINK accumulation accelerated in December last year and has continued since then. During this period, Grascale bought 4 million LINK while LINK’s price dropped from $15 to as low as $7.2.
Grayscale’s accumulation reflects sustained client demand for LINK exposure, despite sharp price corrections. Data from LINK exchange-traded funds (ETFs) reinforces this narrative. Since receiving regulatory approval, these ETFs have not recorded a single day of negative net flows.
Although the average daily total net inflow remains below $1 million, the absence of outflows suggests that investors maintain confidence in LINK’s long-term price prospects.
This trend contrasts with several other crypto ETFs, where capital flows tend to fluctuate with market sentiment.
The relative stability may stem from investor confidence in Chainlink’s role as a critical infrastructure for decentralized finance (DeFi) and blockchain applications. Chainlink delivers reliable data feeds that enable lending platforms, derivatives markets, and prediction markets to operate smoothly. This utility continues to attract institutional capital seeking long-term returns.
Since February 2026, Chainlink has also served as infrastructure for five-minute prediction markets on Polymarket, the largest blockchain-based betting platform globally.
Data from Dune Analytics shows that Polymarket’s monthly notional volume reached a new all-time high of more than $7 billion. Closer integration with an expanding prediction market sector could further strengthen LINK’s long-term value proposition.
LINK May Enter a Prolonged Sideways Phase Near the Bottom
Despite these positive fundamentals, sustained selling pressure continues to weigh on LINK’s price.
Market sentiment has remained in extreme fear territory for several consecutive days. This has intensified the decline and pushed LINK back into the accumulation range of the previous cycle.
Some analysts warn that LINK could enter an extended sideways accumulation phase, as the token remains undervalued.
“You cannot underestimate the importance of time-based capitulation. $LINK took 1.5 years to create a bear market bottom in 2023,” investor Greeny commented.
A prolonged consolidation scenario similar to the past could test holders’ patience. A recent report by BeInCrypto indicates that investors continue to withdraw capital from altcoins. When capital eventually returns, only projects with tangible real-world applications may capture meaningful growth.
