Chainlink Whales Purchase $20,000,000 LINK in Just 7 Days


The cryptocurrency market has recently experienced increased volatility. Although the present levels are considerably below the peaks seen in January and March of this year, significant progress has been achieved during the past few days. In fact, a number of macroeconomic-related events are scheduled this week, which is predicted to increase volatility.

Oracles for Chainlink Volatility

Now, Chainlink is developing volatility oracles in such a setting. The increased need for both realized and implied volatility statistics (RV, IV) is noted in a recent blog article. The developer community has been working on two new product solutions, one for each type, based on the same. On multiple testnets, they are currently conducting experiments.

Several Chainlink node operators in an Oracle network will fetch the RV data that data providers have calculated. After that, information will be compiled into an Oracle report that has been aggregated and published on-chain for DeFi applications to consume.

There are typically reference data for RV. However, since IV is frequently dependent on forecasts, that is not the case. There isn't really a single computation approach. Since Chainlink Functions will let dApps specify their technique, IV is a forecast of future volatility. The blog article explained Chainlink's function in such a case by saying,

*Chainlink Functions provides the ideal infrastructure solution, with dApps able to draw implied volatility data from as many or as few data providers as they desire, providing the ultimate discretion for their in-house calculations—all without having to deal with managing their own Oracle node infrastructure

Four blockchain testnets, including Arbitrum Goerli, Avalanche Fuji, Ethereum Sepolia, and Polygon Mumbai, presently offer access to RV data. On the other hand, three testnets—Avalanche Fuji, Ethereum Sepolia, and Polygon Mumbai—allow access to IV. So, before the functions are fully released on the mainnet, DeFi developers can now request for beta access.

This is a "very timely release," says well-known Chainlink community member "ChainLinkGod."

Investor Attitude

Despite the upheaval in the macromarket, it is clear that Chainlink's fundamentals have not gotten worse. In fact, it appears that whales are also on board. According to a recent research by Santiment, this weekend's price collapse to a 3-year low of $5.00 caused LINK-related whale transactions [>$1 million] to rise to a 7-month high. Santiment pointed out the amount of accumulation and said,

“Mid-sized 1K-100K LINK wallets are particularly accumulating big, with 3.9M LINK (worth $20.0M) accumulated in the past week.“


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