- Substantial LINK deposits sparked uncertainty regarding the cryptocurrency’s trajectory as it experienced a surge in price.
- Despite the recent price increase, Chainlink lagged in user growth and witnessed a decline in development activity.
The movement of large sums of Chainlink[LINK] captured the crypto community’s attention. This triggered speculation about the cryptocurrency’s next moves. As various altcoins surged in the wake of Bitcoin’s [BTC] rally, LINK seemed to lag behind, raising concerns among traders and investors.
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Large addresses make moves
One noteworthy aspect was the apparent lack of whale interest in LINK. Data from Arkham Intelligence revealed a substantial deposit of $7 million worth of LINK to Binance over just an eight-hour period by a significant CEX trader, known as 0x5bA.
Strikingly, LINK’s price saw a 6.5% decline during this deposit, highlighting the potential impact of whale movements on the cryptocurrency.
0x5bA still holds another $3M of LINK.
Shall we check back again in 8 hours?
Follow their movements for yourself on Arkham:https://t.co/kkwEZkueR7
— Arkham (@ArkhamIntel) October 23, 2023
Despite the lack of substantial whale interest, LINK displayed notable price and volume surges in the past three days. It gained over 30% since the start of the weekend. This trend was further exemplified when 0x5bA deposited $3 million worth of tokens to Binance after receiving over $10 million in LINK earlier.
This wave of large-scale transfers can have a significant impact on LINK’s price dynamics. At the time of writing, LINK was trading at $10.264. However, the number of LINK holders decreased substantially in recent days, accompanied by a notable decline in LINK’s velocity.
Despite these challenges, a substantial number of traders remained optimistic about LINK’s price growth. Coinglass data revealed that long positions made up 56.9% of all trades, indicating sustained trader confidence in LINK’s potential.
Realistic or not, here’s LINK’s market cap in BTC’s terms
Taking a closer look at the protocol’s performance, the past week experienced a remarkable 100% increase in the Number of Active Users on the network. This surge in user activity seemed promising, but it was juxtaposed with a concerning 51.52% decline in the Daily Revenue generated on the protocol during the same period.
The dynamics of Chainlink’s Development Activity presented another concern. Over the last month, the data revealed a significant 35.5% decrease in code commits.
Additionally, the number of core developers associated with the LINK protocol decreased by 14.4% in the same timeframe. Such trends could potentially have adverse effects on Chainlink’s future prospects.