Chainlink recently saw a spike in its social volume, hitting the highest level in more than six months.
LINK saw a higher average number of Daily Active users in January.
In a post on Jan. 23, Chainlink [LINK] emphasized the Proof-of-Reserve (HbR) and its benefits. Due to the FTX crash in 2022, the concept received a lot of attention.
Gold, currency, real estate and commodities together are worth more than $40 trillion. But only ~$200 billion of that is represented on-chain in a trust-minimized and tokenized form.
That is only 0.5% of the addressable market.
Enter #Chain link Proof of Reserve (HbR).
— Chainlink (@chainlink) January 22, 2023
Read Chainlinks [LINK] Price Forecast 2023-24
After the failure of the second largest exchange, Chanpeng Zhao of Binance led the call for the publication of reserves by all crypto exchanges. Chainlink’s Port Authority post went viral as it addressed a very current issue in the cryptocurrency industry.
Chainlink’s Proof of Reserve is a distributed oracle service that can validate the reserves of a smart contract. To do this, the smart contract requests the current balance of a specified account from the Chainlink network and compares it to the balance defined in the contract.
This adds credibility to the smart contract by verifying that it owns the assets it claims to own. After being in development for a while, Chainlink finally released its Proof of Reserve services in late 2020.
Social Volume responds en masse
Santiment’s data suggested that the PoR message struck a chord with the crypto community, leading to an increase in conversation and interest in Chainlink. On January 23, the Social Volume metric passed 37,000. This was the most significant level the statistic had been at in over half a year, making it rather outstanding.
The social volume metric is used in the crypto space to describe the level of discussion and interaction around a particular coin/token on various online discussion forums and social media channels. The level of interest and enthusiasm about a cryptocurrency can be measured by looking at its social volume. The metric can then be used to make price predictions for Chainlink.
CONNECT active users
The number of Chainlink users increased significantly in January, according to an analysis of the Daily Active Address statistic. At the time of writing, the stat was over 200, with over 800 users on the previous day. While there were minimal spikes in previous months, January generally had more active users.
A possible future increase if…
LINK’s daily timeframe chart gave a clearer picture of LINK’s recent bullish trend. While LINK is on the rise, it seems to be trying to consolidate at the price it was at. Between $6.62 and $6.67, it seemed like a support level was emerging. It was trading at around $7.14 at the time of writing, up more than 2% over the observed trading period.
How much are 1.10.100 LINKs worth today?
A steady increase in social volume would increase the token’s prominence. Greater interest could lead to more involvement in the project, which would be beneficial for LINK.
The Directional Movement Index (DMI) indicator showed that LINK was in a bull trend. In addition, the asset’s bullish trend was indicated by the plus DI and the signal line of the DMI above 20.
This post Chainlink Emphasizes Proof-of-Reserve As Social Volume Spikes: LINK To Rise Next?
was published first on https://ambcrypto.com/chainlink-highlights-proof-of-reserve-as-social-volume-spikes-link-to-rise-next/