Chainlink: Is LINK Attracting Investors as Key Metric Hits Cycle Lows?

Bullish case builds for Chainlink as long-term holders ease selling

Chainlink (LINK) has emerged as a significant player in the cryptocurrency market, particularly through its development activities on the Solana platform. Recent metrics suggest a potential bullish turn for LINK as long-term holders begin to accumulate once again.

Key Takeaways

Chainlink's ecosystem development on Solana highlights its oracle infrastructure's need for ongoing activity.
The HODLer net position change metric indicates a shift towards accumulation rather than distribution.
The percentage of Chainlink supply in profit remains low but has shown signs of recovery, indicating positive future trends.
Recent developments, such as the launch of LINK and Micro LINK Futures contracts by CME Group, bolster investor confidence.
Monitoring Bitcoin’s performance is essential, as it significantly impacts overall market sentiment.

Chainlink's Development Activity on Solana

Chainlink Development Activity
Source: Santiment on X

Chainlink (LINK) has taken the lead in ecosystem development within the Solana (SOL) network. At first glance, this may seem surprising; however, Chainlink serves as an oracle infrastructure that necessitates continuous developmental efforts. The Santiment ecosystem filter incorporates Chainlink due to its focus on the Cross Chain Interoperability Protocol (CCIP) and its provision of price and data feeds to decentralized finance (DeFi) projects on Solana. This involvement explains why Chainlink is experiencing robust developmental activity compared to other SOL-native protocols.

Beyond the developmental aspects, several on-chain metrics suggest that Chainlink may be poised for a bullish comeback.

Why Investors Should Consider Chainlink

Chainlink Net Hodler Position Change
Source: Glassnode

As the global financial landscape increasingly shifts toward on-chain solutions, Chainlink presents a significant opportunity for long-term investors. Metrics such as the HODLer net position change indicate that accumulation by holders might be on the horizon. Although this metric fell into deeply negative territory in November, it has since reset to neutral levels, signaling that holders have ceased cashing out and appear ready to build new positions.

This pivot away from aggressive distribution coincides with another potentially bullish indicator.

Chainlink Supply in Profit
Source: Glassnode

The Chainlink supply in profit metric tracks the share of the circulating supply that is currently profitable. In November and December, this metric fell to lows not observed since September 2023, sitting at 27.58% as of now— a relatively low figure. Historically, from August to October 2024 and March to July 2025, this metric fluctuated between 30%-40%. During both of these previous periods, LINK prices saw multi-month consolidations around market lows before finally recovering. A similar pattern may emerge once again.

In addition to these metrics, important news from the CME Group, the world's largest derivatives market, reveals they have introduced LINK and Micro LINK Futures contracts. On the launch day, the Bitwise spot ETF received $2.59 million in inflows, further signifying that whale accumulation is strengthening the case for LINK buyers.

These combined factors present a 'buy' signal for investors. Additionally, Bitcoin (BTC) performance should be closely monitored, as it greatly influences market sentiment.

Closing Thoughts

In summary, with Chainlink's developmental advancements and shifting investor behaviors, there are strong signs pointing towards a potential bullish increase. As more investors recognize Chainlink's value, it becomes an important asset to consider within the cryptocurrency sphere.