Why Is Chainlink Outperforming Bitcoin & Ethereum Recently?

Chainlink’s native token, LINK, has rebounded by nearly 75% after bottoming out at $5.29 in May. The price of the token momentarily rose to a high of $9.20, which had not been reached since the middle of August. This is said to have been caused by the intense activity of LINK wallets over the past month.

Here’s What Driving Chainlink’s Price

According to Santiment data, the percentage of Chainlink supply held by addresses with a balance between 1,000 and 1 million LINK increased to approximately 23% in November from 18.2% in May. This suggests that the main drivers of the LINK price recovery may have been wealthy investors.

🔗 #Chainlink spiked all the way above $9.20 for the first time since August 13th, a ~3 month high despite very volatile markets. This rise has been supported by the largest amount of active $LINK addresses in 5 weeks, and traders are longing aggressively. https://t.co/ZxsZnveURm pic.twitter.com/lia6XAgSar

— Santiment (@santimentfeed) November 8, 2022

Staking Coming Soon

It’s interesting to note that as “Chainlink Staking” approaches, the tendency of LINK accumulation increases.

At SmartCon 2022, Chainlink co-founder Sergey Nazarov made the long-awaited announcement that their LINK staking reward function would launch in December. Additionally, the project’s official website confirmed that “qualified community members” will be allowed to stake LINK into its pool in December.

New Partnerships

Again, on November 3rd, Chainlink announced a major new partnership where they would be joining hands with Seedify — a leading incubator cum launchpad for DLT games, NFTs, and Metaverses. Through this collaboration, Chainlink hopes to use its oracle services in order to help expand the GameFi and NFT space.

#Blockchain gaming incubator and launchpad @SeedifyFund has entered into a channel partnership with @ChainlinkLabs.

Explore how the collaboration helps boost the growth of #GameFi and #NFTs👇https://t.co/A3jsZBIT2J

— Chainlink (@chainlink) November 3, 2022

Given that other coins like Bitcoin & Ethereum have tumbled in synchrony in response to the insolvency reports of the cryptocurrency exchange FTX, LINK appears to have gained in the short term from new partnerships and majorly due to the excitement surrounding the Staking feature.