Chainlink (LINK) Address Activity and Network Growth Falls to October 2020 Lows

By Bhushan Akolkar
Published June 25, 2021 Updated June 25, 2021
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Chainlink (LINK) Address Activity and Network Growth Falls to October 2020 Lows

By Bhushan Akolkar
Published June 25, 2021 Updated June 25, 2021

Oracle service provider Chainlink (LINK) has been under severe pressure with the altcoin market correction over the last month. The LINK cryptocurrency has corrected more than 60% now from its all-time high of $50 on May 10, 2021.

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As a result, LINK has slipped multiple ranks from the top ten cryptos to now being the 15th ranked cryptocurrency in the market. This comes amid the declining address activity and declining network growth.

On-chain data provider Santiment reports a significant drop in the number of new LINK addresses created on the network which ultimately denotes the drop in user adoption as Chainlink loses traction.

Santiment report shows that the Chainlink network growth has dropped to levels last seen in October 2021. “Less and less addresses were interacting with LINK for the first time. This doesn’t look like a great sign,” it notes. Besides, with the October 2020 bottom, there was a bullish divergence as the LINK price continued to surge while the network growth remained stagnant.

Courtesy: Santiment

The Sharp Fall in LINK Active Addresses

In terms of the average active addresses, the LINK price has also tanked significantly. Since April 2021, the LINK active addresses have tanked by more than 50%. Now, only 5K addresses are active on a daily basis in comparison to 13K active addresses in April.

Courtesy: Santiment

Amid the broader market this week, the exchange inflows for LINK also shot up significantly as the cryptocurrency was subjected to panic selling. Besides, there was a big drop in the Chainlink Network Prfot Loss Indicator. As Santiment reports:

“A big drop in NPL detected on Thursday. That should mean the average loss of LINK tokens moved this day is significantly higher than usual. A significant loss combined with Exchange Inflow spikes could indicate crowd fear, it’s good for price”.

At press time, LINK is trading 5.22% up at a price of $18.88 with a market cap of $8.1 billion.

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Disclaimer
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
About Author
Bhushan Akolkar
715 Articles
Bhushan is a FinTech enthusiast and holds a good flair in understanding financial markets. His interest in economics and finance draw his attention towards the new emerging Blockchain Technology and Cryptocurrency markets. He is continuously in a learning process and keeps himself motivated by sharing his acquired knowledge. In free time he reads thriller fictions novels and sometimes explore his culinary skills.

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