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Chainlink is down 30%, but the on-chain and derivatives indicators show that investors have an increasing interest. Chainlink Price Metrics had a pretty rough month, falling by 45% after an all-time high of $37 on 20 Feb.
Although the recent losses might look surprising in comparison with the gains of other altcoins, in the last nine months, LINK has still managed to reach 640%. Therefore, the failure to maintain above 32 dollars should not be construed as a change of trend.
Chainlink Price Metrics
Kindly read below the key chainlink price metrics to check if its gathering strength or not:
Chainlink with Defi boom
Chainlink price at Binance, USDT. Source: TradingView
The de-centralized finance boom (Defi) was also in a very good position for Chainlink. Many of the prices feed connecting individual blockchains and decentralized exchanges use their price oracles to discover prices.
This project was proactive when the network fees of Ethereum were higher and adapted quickly to “off-chain reporting,” which replaced the aggregation of in-chain data with an off-chain consensus round. “
The aggregates are then transmitted to the blockchain, where a clever contract checks that a quorum of nodes agree on this version of data, as Cointelegraph reported previously.
Even with strong Defi growth and healthy online indicators, LINK’s price struggles to recover the 30 dollars aid. On-line indicators such as daily active addresses and transactions continue to show strength, together with open interest in futures contracts.
Check out Chainlink(LINK) Price now!
On-chain data displays strength
The transfer value is a leading on-chain user activity indicator that includes all moved corners every day. CoinMetrics analysis provides precise data by adapting these figures so that mixers and transactions between the same entities are excluded.
There were about $600 million in daily adjusted transfers, 235% of which were earned since the beginning of 2021. The current level is twice as large as Litecoin (LTC), a crypto-monetary with 7% market capitalization, but as second-layer scaling solutions evolve, the main case of the project has fallen.
Daily active addresses are yet another vital on-chain metric, although they are easily inflated at relatively low transfer costs. Given that Chainlink is running on the Ethereum network, that cannot certainly be the case.
Chainlink daily active addresses 7-day average. Source: CoinMetrics
As mentioned above, the daily active addresses of Chainlink have been above 10,000, despite the recent decrease. One should contribute to the rising network charges for Ethereum that could explain the lack of new highs. However, the 14% gain in the indicator in 2021 can be considered positive.
Futures contracts demand held strong
Had the top traders abandoned or lost interest in Chainlink, the open-interest futures contracts would have been affected. Although this measure does not necessarily dictate bullishness, the interest of investors remains a healthy amount of derivatives activity.
Chainlink futures open interest. Source: Coinalyze.net
The data above show no evidence that the open interest in futures contracts has been reduced. The sharp fall on February 21 and February 22 reflects the 41% price crash. Meanwhile, LINK regained the $26 support level less than a week later, and the open interest in its future continued to grow.
Investors may start speculating that an ‘Altcoin’ season is close if the present bullish market conditions persist. Chainlink price metrics currently look well-positioned to benefit from the Defi peak.
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