Whales, ETFs, and Trump-Backed DeFi Fuel Chainlink’s Institutional Takeoff

Chainlink (LINK) has experienced a notable surge in institutional interest and trading activity, with on-chain data showing whale wallets—those holding between 100,000 and 1 million LINK and those with more than 1 million LINK—reaching an all-time high of over 600 in early September. These large addresses collectively added 1.25 million LINK within the first two days of the month, indicating strong investor confidence in the asset. The accumulation is occurring amid a broader increase in market demand, as LINK’s daily trading volume has consistently ranged between $1 billion and $2 billion, significantly above the $500 million average seen in July [1].

The uptick in whale activity has coincided with growing demand for Chainlink’s Cross-Chain Interoperability Protocol (CCIP), which facilitates communication between different blockchains. In early September, CCIP processed over $130 million in cross-chain transfers in a single day, with $106 million of that volume attributed to transactions involving World Liberty Financial (WLFI), a DeFi project backed by Donald Trump’s team. This usage underscores Chainlink’s role in enabling DeFi applications and blockchain integration [2].

Chainlink’s broader utility is also expanding beyond crypto markets, with recent partnerships including one with the U.S. Department of Commerce to bring on-chain real-world economic data such as GDP and consumer spending metrics. These integrations enhance Chainlink’s foundational role in connecting blockchain ecosystems with traditional financial infrastructure [2].

Meanwhile, traditional institutional exposure to LINK is gaining momentum as Grayscale has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) to convert its existing Chainlink Trust into a spot exchange-traded fund (ETF). The proposed fund, which would trade under the ticker GLNK on NYSE Arca, aims to provide investors with direct exposure to the price of LINK. It includes the potential for a staking component, where LINK assets could be staked using third-party providers, generating yield for investors under certain regulatory conditions. Coinbase Custody Trust Company is expected to serve as the fund’s custodian [3].

The Grayscale filing is part of a broader trend of ETF applications for various cryptocurrencies. The firm is also seeking approvals for ETFs tied to Solana (SOL), Dogecoin (DOGE), and XRP. While the SEC has not yet approved or denied any of these proposals, the increasing number of applications highlights a shift in the regulatory landscape under the Trump administration, which is perceived to be more favorable to crypto projects [4].

Market sentiment appears to be aligning with these developments. Chainlink’s price has climbed to approximately $23, with its realized price—representing the average purchase cost of all circulating tokens—remaining at around $15.1. This level has historically acted as a strong support during market corrections. Analysts project that, if current trends continue, LINK could approach its all-time high of $53 by 2025, representing a potential 130% increase from current levels [1].

The combination of institutional accumulation, cross-chain adoption, and the potential introduction of a regulated investment vehicle in the form of an ETF presents a compelling case for Chainlink’s continued growth. These factors are reinforcing investor confidence and highlighting the token’s expanding role in both decentralized and traditional financial systems.

Source:

[1] Chainlink Whale Wallets Hit 600 as LINK Trading Volume Tops $2 Billion (https://www.fxleaders.com/news/2025/09/05/chainlink-whale-wallets-hit-600-as-link-trading-volume-tops-2-billion/)

[2] Chainlink Whale Addresses Reach All-Time High in September Amid Rising Demand for Cross-Chain WLFI (https://www.fxstreet.com/cryptocurrencies/news/chainlink-whale-addresses-reach-all-time-high-in-september-amid-rising-demand-for-cross-chain-wlfi-202509041729)

[3] Grayscale Seeks SEC Approval to Launch Spot Chainlink ETF in the U.S. (https://www.theblock.co/post/369788/grayscale-seeks-sec-approval-to-launch-spot-chainlink-etf-in-the-us)

[4] Grayscale Files for What Could Be First-Ever U.S. Chainlink ETF (https://finance.yahoo.com/news/grayscale-files-could-first-ever-142738823.html)