Chainlink announced multiple partnerships despite declining prices and activity
The number of losing transactions increased as holders lost confidence in LINK

In a recent development Chain link [LINK] announced it would be collaborate with Arbitrum to help layer 2 dApps grow in the DeFi space.

Read Chain links [LINK] Price prediction for 2023-24

New partnerships during the crypto winter

Arbitrum could make use of the collaboration Chain link‘s automation and scale the dApps on its network. In addition, Chainlink also collaborated with other organizations in the Web3 space. The growing number of products and collaborations on the Chainlink network kept developers busy.

According to data from Token Terminal, the number of daily active developers is on the rise Chain link continued to grow. This was indicative of developers actively contributing to Chainlink’s GitHub.

Source: Token Terminal

Despite Chainlink’s many collaborations and growing development activities, the network continued to underperform in terms of price and user activity.

Data collected by Santiment showed the number of major addresses owned Chain link had refused. This was indicated by the decreasing percentage of LINK owned by top addresses.

Subsequently, activity on Chainlink also decreased. This development was observed due to the decreasing daily active addresses on the Chainlink network.

Together with the daily active addresses, the speed of LINK also decreased. This indicated that the rate at which LINK was exchanged between addresses had slowed down.

Source: Sentiment

Switch bears show their teeth

These factors could have led to a decline in Chainlink’s prices, which could also have affected its market value to realized value (MVRV) ratio.

According to data from Santiment, the MVRV ratio has been falling in recent weeks. A negative MVRV ratio indicated that if all LINK holders sold their holdings, they would do so at a loss.

It turned out that some LINK holders did just that. This was evidenced by the recent increase in the volume of loss-making transactions. This spike in trades at a loss combined with a declining MVRV ratio implied that more and more Chainlink holders sold their LINK.

It looked like LINK had lost the trust of the holders. In addition, Chainlink failed to attract new addresses for its network. The slowing network growth of the past few days served as proof of this.

Slowing network growth suggested that the number of new addresses that had switched to Chainlink for the first time was declining.

Source: Sentiment

At the time of writing, LINK was trading at $5.96. The price fell 0.60%, while volume fell 59.51% in the past 24 hours, according to CoinMarketCap.

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