- Chainlink is reported to have a bearish outlook with a significant decline in whale transactions and 24-hour active addresses.
- However, there are a few positive developments around the network such as the rise of token holders from 80,000 to 85,800.
Chainlink (LINK), a decentralised oracle network created in 2017 to bridge blockchains and external systems has become one of the fastest-growing and efficient technologies in the ecosystem. Having sealed several strategic partnerships and introduced real-world solutions, its native asset has become appealing to the crypto world.
According to CoinMarketCap (CMC) data, it currently has a holding address of 713,679.00 of which 49% belong to whales, 20% belong to investors, and 29.5% belong to retailers. Interestingly, it has brought significant gains to investors with a Return on Investment (ROI) of 11198.86%. At press time, LINK was trading at $17.68 after declining by 5% in the last seven days. Its market cap of $10.3 billion makes it the 16th largest crypto, trailing Tron, Polkadot, and Bitcoin Cash by less than $1 billion.
LINK’s current market situation is generally gloomy, invalidating all short-term predictions of the asset returning to its peak. Data shows that large transactions involving LINK have fallen by 23.55% in the past seven days, amounting to $70.32 million. According to market analysts, the considerable decline in these transactions implies that whales have been overlooking the asset.
More on the Chainlink (LINK) Analysis
The total active address of LINK has also recorded a significant decline according to on-chain data from Santiment. The report states that the 24-hour active addresses on Chainlink on April 1 were around 4000. However, the number had declined to 3139 at press time as shown in the chart below.
This indicates that there has been less interaction on the network. While this could be a typical bearish sign, analysts believe that this could also serve as a local bottom based on the historical move of the asset.
Another look at the asset also indicates that investors may be interested in the long-term potential of LINK. As disclosed by data, LINK had less than 80,000 holders on March 3. At press time, the number had increased to 85,800. Some of the other positive changes around the digital asset also include the overall network growth which has increased from the March 24 low to an encouraging figure. This implies that the new addresses have been performing activities on the network.
While the market currently shows a recessive signal, it is important to understand that its network performance is a huge opposite to its early March metrics readings. In an article published by Crypto News Flash, it was stated that whales had increased their holdings with the overall LINK holders withdrawing their assets from the exchanges. This was certainly a bullish outlook. Lookonchain said 830,000 LINK tokens were withdrawn from Binance within the period.
Outside the circumstances of the market, Chainlink keeps expanding the scope of its initiatives with several collaborations including a recent partnership with PropyKeys, a subsidiary of Propy Ecosystem. This was comprehensively covered by Crypto News Flash.
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