Grayscale Investments has significantly increased its holdings of Chainlink (LINK) tokens, surpassing 5 million LINK for the first time in February 2026, even as the token's price has fallen more than 70% from its previous peak. According to data from Arkham Intelligence, Grayscale's balance reached approximately 5.258 million LINK, valued at over $43 million. The accumulation accelerated in December 2025 and continued into 2026, with the firm buying around 4 million LINK as the price dropped from $15 to as low as $7.2.
This institutional accumulation coincides with a full retracement of LINK's 2023–2025 rally, placing its price back near the $8.72 level—a long-term demand zone that has held multiple times before. Analysts like Cryptorphic argue this is a reset, not a breakdown, putting LINK back into "accumulation territory." Technical indicators support this view: the Relative Strength Index (RSI) is near historical lows, and the price structure is stabilizing, suggesting sellers are losing momentum.
On-chain data from Santiment adds weight to the undervaluation thesis. The 30-day Market Value to Realized Value (MVRV) ratio for LINK stood at -5.1% as of February 21, indicating slightly undervalued conditions where average holders are at a loss. Santiment noted that dollar-cost averaging during such periods is a historically sound strategy. LINK's spot Exchange-Traded Funds (ETFs) have also shown consistent demand, with no days of negative net flows since approval, though average daily inflows remain below $1 million.
Despite the positive fundamentals and institutional backing, LINK faces persistent selling pressure and extreme fear in market sentiment. Some analysts, like investor Greeny, warn that LINK could enter a prolonged sideways accumulation phase, similar to the 1.5-year bear market bottom formation in 2023. The token's integration as infrastructure for Polymarket's five-minute prediction markets, which saw a monthly notional volume high of over $7 billion, underscores its real-world utility in DeFi and blockchain applications.
