Grayscale Investments’s Chainlink (LINK) Holdings Hit New High as Price Falls Over 70%

Core Insights - Chainlink (LINK) has experienced a significant price drop of over 70% from its peak last year, yet Grayscale Investments has increased its holdings to a record high, indicating growing institutional confidence in the project's long-term potential [1][2] Grayscale Holdings - Grayscale's LINK balance exceeded 5 million tokens in February 2026, currently valued at over $43 million [2] - The firm accumulated 4 million LINK tokens since December last year, during which the price fell from $15 to as low as $7.2, reflecting a strategic buying approach amidst price corrections [3] Institutional Demand - Grayscale's accumulation of LINK suggests sustained client demand for exposure to LINK, despite ongoing price declines [4] - LINK exchange-traded funds (ETFs) have not recorded any negative net flows since receiving regulatory approval, indicating investor confidence in LINK's long-term price prospects [5] Market Stability - The average daily total net inflow for LINK ETFs remains below $1 million, but the absence of outflows contrasts with other crypto ETFs, suggesting a stable investor sentiment [5] - Investor confidence in Chainlink's role as critical infrastructure for decentralized finance (DeFi) and blockchain applications contributes to this stability [6] Market Integration - Chainlink has been integrated into five-minute prediction markets on Polymarket, which has seen its monthly notional volume reach over $7 billion, potentially enhancing LINK's long-term value proposition [7] Market Sentiment - Despite positive fundamentals, LINK faces sustained selling pressure, with market sentiment remaining in extreme fear territory, which has contributed to its price decline [9]