What the decline in Chainlink’s popularity means for its pricing

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When the price of Bitcoin has declined or stayed rangebound in the past, the price of LINK has constantly grown. LINK was trading at $27.22, and the number of sending addresses has decreased in the case of LINK, according to Glassnode statistics.

 

What LINK's drop in popularity isn't the end

Source: Twitter

According to the preceding graph, the number of sending addresses has decreased. Furthermore, despite a price increase, LINK has seen a decrease in social traffic and popularity. However, this is not the end of the road for LINK, and with increased momentum, volatility, and users, the stock is expected to rise shortly.

According to IntoTheBlock statistics, the concentration of LINK by significant HODLers was at 78 percent. This is expected to change, since an increase in concentration is anticipated to be positive for LINK. A decrease in concentration may have a negative influence on the price due to a decrease in liquidity.

The dip in popularity of LINK may be brief, considering that market capitalisation, users, and demand have steadily climbed since the beginning of 2021. This time, LINK’s on-chain activity and social volume have had an influence on price, in addition to responding to Bitcoin’s activity.

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The number of active addresses, transactions, and transfers on the LINK network has surged, indicating a rally to $50. The price is roughly 50% below its all-time high, but that hasn’t stopped HODLers and traders. Even if the cryptocurrency remains undervalued, the accumulating continues.

The 24 hour transaction volume on spot exchanges is increasing across numerous markets. The rally is expected to continue for the next two weeks.

Because of the network’s continuous upgrades, the LINK community has endorsed the demand. The new DeFi projects that cannot be live/supported without Chainlink’s oracles, as well as the production of dynamic NFTs utilising LINK, are among the partnerships and new developments on the LINK network. Through the Strata-Chainlink cooperation, this provides a multilayered project in NFT as well as a good use case for LINK. LINK had 55 integrations in May 2021 alone, therefore the decline in popularity cannot be correlated with a decline in price or market valuation for LINK.

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