- LINK speed and smart contract width have dropped dramatically over the past five days
- But the LINK that is held in smart contracts has grown significantly in the past four weeks
It is often difficult to find winners in the cryptocurrency market during a major crash but Chainlink [LINK] Probably. Although its native currency, LINK, has suffered a significant drop so far this month, Chainlink continues to see gains as a potential solution.
Chainlink reading [LINK] Price Forecast 2023-2024
Chainlink can facilitate reserve proofing, which could be the perfect solution to help solve some of the cracks that were exposed during the 2022 market crash. During a recent interview, Chainlink CEO Sergey Nazarov highlighted how reserve proofing has Helps investors identify the risks that led to the bankruptcy of FTX.
# ProofOfReserve It shines on the black box of the financial markets.Tweet embed And the Tweet embed discuss how #chain link Proof of reserve can help prevent infection and systemic risks: https://t.co/YCpEVrDrSL pic.twitter.com/0zkV8ouen5
– chainlink 12 November 2022
According to the CEO of Chainlink, proof of reserve can help overcome systemic financial risks, as well as contagion risks. Chainlink, as an Oracle service provider, can help facilitate the widespread use of reserve proof. Moreover, given the current market scenario, it can be considered more of a necessity than an option. The good thing is that it also provides an opportunity for the market to adapt and grow from the latest challenges.
The need for widespread proof of backup adoption identifies another opportunity for Chainlink adoption. It underscores another reason why Chainlink’s offering continues to add value and why the network has such strong long-term potential. A healthy, long-term adoption can increase the value of LINK.
Chainlink has reported healthy growth in the last 30 days. For example, its exposure to LINK in smart contracts has grown exponentially in the past four weeks. The same was observed for its speed.
The speed and supply of LINK in smart contracts has decreased significantly over the past five days. This reflects the impact of last week’s crash on Chainlink’s performance. But will we see a recovery this week?
One of the best ways to assess demand was to look at the headline balance. LINK’s display of top titles has decreased significantly in the past five days. But the good news is that whales/headlines are no longer selling. Regardless, we have yet to see a return of strong buying pressure.
Chainlink’s remittance volume has also been very successful in recent days. Therefore, investors should monitor the pivotal transmission volume as confirmation that it calls for recovery.
LINK price action
The above observations may explain the current performance of LINK. LINK was trading at $6.17 at the time of writing, still within the 2022 low range.
Although there is still potential for a further pullback, the current price action of LINK presents an opportunity given the long-term potential of Chainlink.