Amongst the altcoin surge of the past week, LINK has been one of the biggest winners, reaching a new all-time high at $8.33 yesterday (currently sitting at around $7.30).

LINK has reached several price ATHs over the past 2 weeks (Glassnode Studio)

Using on-chain data, we can examine where the liquidity for this price pump came from, and whether support for LINK has a strong base.

Exchange Inflow

On July 4th, the number of LINK exchange deposits reached an ATH, with ~5000 individual deposits totalling nearly 4 million LINK (worth almost $19 million at the time). As a result of this influx, the net flow of LINK to exchanges experienced a brief but notable spike, reaching its highest point in over a year.

Then, on July 13th, LINK exchange deposits spiked again (albeit less intensely than the previous spike), bringing net flow back into the positive numbers again as more LINK flows to exchanges.

LINK exchange deposits and net flow to exchanges show increased exchange liquidity (Glassnode Studio)

The July 4th spike caused the balance of LINK on exchanges to experience its first notable incline in over a year, with the majority of the inflow going to Binance. Yesterday's spike in exchange deposits caused yet another incline in LINK's balance on exchanges.

The balance of LINK on exchanges has increased for the first time in over a year, with most deposits going to Binance (Glassnode Studio)

In the days following these waves of deposits, the volume of LINK being traded on exchanges has increased significantly - by some accounts exceeding $1.49 billion in a single day of trading - providing the liquidity behind the recent price spikes.

LINK exchange volumes have more than doubled in recent weeks (Nomics)

While LINK is becoming increasingly liquid on exchanges, on-chain holdings are also seeing increased popularity. Exchange withdrawals have spiked alongside deposits, with this metric reaching its second-highest point ever.

LINK exchange withdrawals are approaching all-time highs (Glassnode Studio)

As a result of this, the number of new addresses acquiring LINK per day has reached an all-time high, and the total number of addresses holding LINK has risen back up to overtake its previous all-time high, after having dipped briefly earlier this month.

The number of new LINK addresses and total addresses holding LINK have both reached all-time highs (Glassnode Studio)

As such, while the waves of exchange deposits and high volumes signify that there is a significant market for trading LINK, it is clear that there is a meaningful contingent of LINK holders who intend to start and/or keep hodling for the time being.

Conclusions

Some market observers have pointed to the spike in exchange deposits as representing mounting sell pressure - but since these deposits occurred, the price of LINK has almost doubled, indicating even higher buy pressure.

Moreover, the significant number of withdrawals from exchanges indicates a strong base of confident LINK "marines" who are willing to hodl rather than realizing gains now.

While liquidity can be a double-edged sword, and the recent price pumps will almost certainly see some correction in the near-term, LINK appears to be growing ever-stronger in terms of both its dedicated follower base and its price fundamentals.


Disclaimer: This report does not provide any investment advice. All data is provided for information purposes only. No investment decision shall be based on the information provided here and you are solely responsible for your own investment decisions.