Chainlink (LINK) has experienced a nearly 30% increase in value over the past month, driven by a growing bullish sentiment. The surge in price is backed by on-chain metrics indicating heightened network activity, which coincided with the Chainlink Staking v0.2 going live.
The upgrade featured an expanded pool size of 45 million.
Chainlink’s On-Chain Metrics Spark Optimism
On November 28th, LINK experienced its largest spike in whale transactions for the year.
Citing data from IntoTheBlock, prominent crypto analyst Ali Martinez revealed that LINK recorded more than 2,600 transactions surpassing $100,000 each.
Historical data from the last six months reveals a pattern where substantial spikes in whale transactions precede a rise in LINK’s price, with a local peak occurring within 2 to 3 days of increased whale activity. This pattern was observed on July 20, October 23, and November 9.
Although the number of whale transactions exceeding $100,000 was comparatively lower in instances preceding November 28, a LINK price rally still occurred within the 2-3 day timeframe.
#Chainlink | Yesterday, $LINK witnessed its largest spike in whale transactions for the year, with over 2,600 transactions exceeding $100,000 each! pic.twitter.com/IoaxjEZjJv
— Ali (@ali_charts) November 29, 2023
The daily transactions on the Chainlink network recently surged by 436% from their monthly low, alongside a substantial net accumulation by major holders.
So far, LINK has reacted positively to the surge with a modest 2% increase and is currently trading at $14.64. Meanwhile, data compiled by Santiment revealed that Chainlink had experienced a massive increase in the movement of dormant tokens in almost three months.
Drawing a connection between surges in dormant token movement, known as ‘Age Consumed’ levels, and subsequent increases in LINK prices, the blockchain analytic firm found that following the spike on September 15, during which 8.34 billion dormant LINK tokens were in motion, the price surged by almost 31% within a two-week span.
Hence, the latest movement of 4.28 billion dormant LINK tokens on November 28th potentially signals more gains for the crypto-asset.
Chainlink V0.2 Launch
Another catalyst of the renewed optimism is the launch of Chainlink Staking v0.2, which introduces a larger pool capacity of 45,000,000 LINK in total, equivalent to 8% of the current circulating supply. The objective of the expansion is to enhance the accessibility of Chainlink Staking to a broader range of LINK token holders. The move is aligned with Chainlink’s Economics 2.0 plan, seeking to add an extra layer of security to the network.
The staking feature was first introduced in December 2022 to enhance the token’s functionality. This allowed LINK holders to support Oracle service performance and earn rewards while contributing to network security. Initially, staking was limited to securing the Ethereum ETH/USD price feed, with a maximum pool size of 25 million LINK tokens.
Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
The post appeared first on CryptoPotato
