Assessing Why Chainlink [LINK] keeps going sideways despite…

Assessing Why Chainlink [LINK] keeps going sideways despite…

Link of the chain has dominated as a leading oracle with 1704 integrations of its various products across multiple chains.

However, despite the many integrations and projects in its portfolio, Chainlink’s token LINK refuses to replicate the same success seen within the Chainlink ecosystem.

This year alone, data from the chain link ecosystem shows that Chainlink has successfully completed 399 integrations of its products.

It has completed 76 data source integrations, 88 VRF integrations, 22 gatekeeper integrations, 11 node integrations, three standby test integrations. And the network integrated five other APIs.

In his last ‘Adoption Update‘, Chainlink informed users that between August 8 and 14 it recorded 19 integrations from five of its services on seven different chains.

LINK, seven and a half months later

Priced at $8.62 at press time, the token price is down 56% since the beginning of the year.

Now in 24th place, its market cap dominance has steadily declined since the year began, according to data from Messari.

When the year began, LINK’s market capitalization represented 0.41% of the total crypto market capitalization in circulation. At the time of writing this article, the dominance of the token stood at 0.357%.

Source: Mesari

As its price suffered during the bear market in the first half of the year, LINK’s trading activity also fell.

So far this year, trading activity on the network is down more than 85% from the daily high of four billion recorded in trading volume on January 5.

Interestingly, while the price fell, the number of addresses on the LINK network increased.

According to Messari data, 689,383 addresses currently hold a different number of LINK tokens.

However, despite the growth in the network’s address count, active addresses steadily decreased over the same period.

With only 2,220 active addresses on the network as of this writing, there has been a 138% decrease in active addresses on the network since the year began.

Source: Mesari

Additionally, a significant amount of LINK tokens have come off the exchanges compared to what has been shipped this year.

Therefore, with a continued decline in LINK token trading inflow, more downside to the token price is expected.

Source: Sentiment

Despite the price drop, whales holding between 10,000 and 10,000,000 LINK have consistently outperformed their stocks.

Source: Sentiment

While this has happened, it is also worth noting that the number of whales holding more than $10 million worth of LINK tokens has been steadily declining since the year began.

At 91 at the time of publication, the count for this category of whales has dropped by 30% in the last seven months.

Source: Mesari

Leave a Reply

Your email address will not be published.