Chainlink: Increased accumulation of whales does not mean much if …

  • LINK has seen an increase in whale backlogs over the past eight months.
  • However, on-chain valuations revealed some stagnation that could make it difficult for the price to grow.

Leading Oracle Chainlink [LINK] witnessed an increase in the accumulation of whales, feelings It was revealed on January 18th. At the time of writing, more than 460 addresses contained at least 100,000 LINK tokens. Interestingly, amid the sharp drop in trading year 2022, the election backlog has intensified with the number of election addresses rising to levels last observed in 2017.

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Since May 2022, the number of voting addresses with at least 100,000 LINK tokens has increased by over 26%. Normally, whale accumulations of this magnitude have had a significant impact on the market, as the actions of these large owners can influence the price of a crypto asset to go up.

However, the general market crash in 2022 resulted in a steady decline in the LINK price over the 12-month winter period.

Flashes of red light?

Although LINK’s value has increased by 23% since the beginning of the year, reflecting the overall growth of the market, an analysis of the cryptocurrency’s on-chain performance has raised some concerns.

According to Santiment data, new demand for LINK has increased by 51% since the beginning of the year. However, the number of unique addresses traded per day is down 56% since January 4th.

Source: feeling

What do the metrics suggest for Chainlink?

An increase in new addresses for a crypto asset along with a decrease in the number of daily active addresses could indicate that while more people were acquiring cryptocurrency, they may not be actively using it or participating in transactions on the network.

It could also mean that the new addresses were created for speculative or long-term purposes, rather than for everyday use.

Moreover, despite the price growth in the past two weeks, LINK has remained undervalued since June 2022. According to Santiment, LINK’s MVRV has been negative since then.

Source: feeling

What is the value of 1,10,100 links today?

An MVRV value between 0 and one for a crypto asset indicates that the asset holders are likely to incur a loss if they sell their assets at the current price. This has been the case for LINK holders, who have mostly sold at a loss since June 2022.

Finally, some hibernation has also been seen on the Chainlink network, as confirmed by a look at the average dollar lifetime of an investment in alt. Since the end of June 2022, this metric has started an upward trend and has been stretching for a longer period, which means that long-standing coins have failed to change hands.

Source: feeling

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