Chainlink price spike due to increased address interactions. There was a decline in VRF demand and network growth, but growing interest in whales and collaborations.
Chain link [LINK], a decentralized oracle network, has seen a significant price increase in recent days. According to data from Santiment, this price increase can be attributed to the growing number of addresses interacting with the Chainlink network. Despite this positive development, it is important to note that this price increase may be short-lived due to new developments.
Read Chainlinks [LINK] Price forecast 2023-2024
Addresses “Link” up
One reason for the price increase is the increasing number of LINK addresses within the network. According to Santiment, this address behavior started two months ago, and over time, this behavior could have a positive effect on Chainlink prices.
While user activity increased, interest in Chainlink’s VRF (Verifiable Random Function) services declined. According to data from Dune Analytics, the number of monthly VRF requests that Chainlink meets has dropped from 43,109 to 8,094 in recent months.
Despite this decrease in demand for VRF, the number of active users using Chainlink as an oracle continued to grow. At the time of writing, according to Dune Analytics, 724,854 active users were using the Chainlink Oracle. This suggested that while demand for one service may be decreasing, overall network usage was still increasing.
Looking at the Chainlink token
All these factors also affected the LINK token. According to data from Santiment, LINK’s network growth has declined over the past month. This showed a decrease in the number of times new addresses were transferred to LINK for the first time, indicating a lack of interest from new users.
However, the growing development activity on the network could point to the possibility of new updates and upgrades, which could attract new users in the future.
Realistic or not, here is the market cap of XRP in terms of BTC
However, whales continued to show interest in the LINK token. This was demonstrated by the growing percentage of major addresses holding the token at the time of writing.
One possible reason for this increased interest from large investors is the recent collaborations on the Chainlink network. The platform integrated with dApps Polygon and Solanawhich can attract new users and investors.
Overall, the price of LINK was $6.30 at the time of going to press and is up 2.91% in the past 24 hours. A decline in demand for one of the core services and a slowdown in network growth could indicate that this price increase may be short-lived.
This post LINK investors are flooding the market, but could declining demand for VRF be a problem?
was published first on https://ambcrypto.com/link-investors-flood-the-market-but-could-declining-vrf-demand-pose-problem/