Journalist
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- LINK demand soars to new highs.
- The price increase has led to a strong increase in profit-taking activities.
Chain link [LINK] has seen a significant increase in the number of active addresses over the past month, up more than 220%, noted on-chain data provider IntoTheBlock in a recent post on X (formerly Twitter).
$LINK is one of the biggest winners in terms of active addresses in the past month, with an increase of over 220%!
🔗https://t.co/3nznGS2KGa pic.twitter.com/AFqIP9Xifp— IntoTheBlock (@intotheblock) November 10, 2023
Likewise, new demand for this asset has increased by 211% over the same period.
According to data obtained from SantimentOn November 9, LINK saw the creation of 3,044 new addresses, the highest daily number since July.
The growth in LINK’s network activity over the past month is due to the overall rally in the market. Taking advantage of this, LINK’s price has risen 108% in the last 30 days.
At the time of writing, the altcoin was trading at $15.04, its highest price level since April 14, according to data from CoinMarketCap.
LINK holders are mainly interested in taking profits
With alt trading at a multi-month high, LINK holders have increasingly sent their tokens to crypto exchanges for further sale. A review of the alt’s exchange activity revealed a steady inflow of LINK tokens onto exchanges since the rally began.
LINK’s currency inflows, observed on a 30-day moving average basis, have grown 17%, according to Santiment data.
This has increased the token’s supply on exchanges by 0.1%, resulting in a corresponding 0.02% decline in off-exchange supply over the same period.
Source: Santiment
Token holders have been incentivized to distribute their holdings due to the profitable LINK trades since the rally began. Data from Santiment shows that the daily ratio of LINK transaction volume to profit/loss at the time of writing was 2.1 (30-day MA).
Read Chainlink’s [LINK] Price forecast 2023-24
It showed that for every LINK trade that made a loss last month, 2.1 trades ended in a profit.
Likewise, LINK’s current market value, with a market value to realized value ratio (MVRV) of 76.29% at the time of writing, was higher than the average price at which it was last purchased. Therefore, most holders could expect a minimum return of 76.29% on their initial investments.
Source: Santiment