- Significant LINK deposits led to uncertainty about the trajectory of the cryptocurrency as it experienced a price increase.
- Despite the recent price increase, Chainlink lagged in user growth and saw a decline in development activity.
The movement of large sums Chainlink[LINK] caught the attention of the crypto community. This caused speculation about the cryptocurrency’s next steps. While several altcoins boomed in the wake of Bitcoin [BTC] During the rally, LINK appeared to lag, raising concerns among traders and investors.
Is your portfolio green? View the Chainlink Profit Calculator
Big addresses make moves
One notable aspect was the apparent lack of interest in whales in LINK. Data from Arkham Intelligence shows that a major CEX trader known as 0x5bA made a significant deposit of $7 million into LINK to Binance in just eight hours.
Notably, LINK’s price fell 6.5% during this deposit, highlighting the potential impact of whale movements on the cryptocurrency.
0x5bA still owns $3 million worth of LINK.
Shall we come back in 8 hours?
Follow their movements yourself on Arkham:https://t.co/kkwEZkueR7
— Arkham (@ArkhamIntel) October 23, 2023
Despite the lack of substantial interest in whales, LINK showed notable price and volume increases over the past three days. Since the start of the weekend, the price has risen more than 30%. This trend was further illustrated when 0x5bA deposited $3 million worth of tokens to Binance after previously receiving over $10 million in LINK.
This wave of large-scale transfers could have a significant impact on LINK’s price dynamics. At the time of writing, LINK was trading at $10,264. However, the number of LINK holders has decreased significantly in recent days, accompanied by a notable drop in LINK’s speed.
Source: Santiment
Despite these challenges, a significant number of traders remained optimistic about LINK’s price growth. Coinglass data showed that long positions made up 56.9% of all trades, indicating continued trader confidence in LINK’s potential.
Realistic or not, here is LINK’s market cap in BTC terms
Taking a closer look at the protocol’s performance, we see a remarkable 100% increase in the number of active users on the network over the past week. This increase in user activity seemed promising, but was accompanied by a 51.52% drop in daily revenue generated from the protocol over the same period.
Source: token terminal
The dynamics of Chainlink’s development activity raised another concern. Over the past month, the data showed a significant 35.5% decrease in code commits.
Additionally, the number of core developers involved in the LINK protocol fell by 14.4% over the same period. Such trends could potentially have negative consequences for Chainlink’s future prospects.
Source: token terminal