Chainlink (LINK) has seen a 70% drop from last year’s peak, but Grayscale Investments’ holdings have hit a new high. Institutional confidence in the project remains strong despite short-term selling pressure.

Grayscale now holds over 5 million LINK tokens, valued at $43 million. Accumulation surged in December as LINK’s price dropped, showing sustained client demand for LINK exposure.

Investor confidence in Chainlink’s role in DeFi and blockchain applications has led to stable capital flows. Chainlink’s utility as a reliable data provider attracts institutional capital seeking long-term returns.

Chainlink has become infrastructure for five-minute prediction markets on Polymarket, with monthly notional volume reaching over $7 billion. Integration with the expanding prediction market sector could boost LINK’s value proposition.

Despite positive fundamentals, continued selling pressure has kept LINK’s price down. Market sentiment remains in extreme fear territory, pushing LINK back into the accumulation range of the previous cycle.

Read more at Yahoo Finance: Grayscale Investments’s Chainlink (LINK) Holdings Hit New High as Price Falls Over 70%