Chainlink [LINK]: ‘Successful recovery’ and what it means for adoption
One of Chainlink’s biggest strengths over the past year has been the rate of its product suite’s adoption. And, while that makes a big difference as a whole on the price action, it also drives investors towards the asset.
Contrary to expectations, alas, the same isn’t happening with Chainlink at the moment.
Despite the altcoin’s 40.92% rally over the last 20 days, LINK is losing its investors’ interest by the day. In fact, less than 2k investors seemed to be conducting transactions on-chain at press time.
The aforementioned finding can also be supplemented by the most significant indicator of the same – Network Growth. The metric underlines the rate of adoption of the asset. After LINK failed to hit a new ATH like other alts, adoption began sliding.
At the time of writing, it had dropped by 69% on the charts.
Chainlink network growth | Source: Santiment – AMBCrypto
Plus, the wobbling confidence of LINK holders is another matter of concern. This was the reason why within four days of 12 March, over 3k investors exited that market.
Chainlink addresses with balance | Source: Intotheblock – AMBCrypto
On account of this apprehension from investors, their activity has reduced. Consequently, most of the time, LINK ends up sitting idly in their wallets. As a result, the rate at which LINK changes hands has also fallen significantly.
Chainlink velocity | Source: Santiment – AMBCrypto
Now, expecting changes in behavior following major ecosystem developments is understandable. However, just yesterday, after Chainlink announced another Chainlink – Filecoin grant for DZK Rollups, not much bullishness was seen.
Even so, LINK did achieve one major milestone this month – The end of its bearishness. After being stuck under the downtrend wedge
Read more on ambcrypto.com
