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December 13, 2024

Decentralized Oracle Network Chainlink (LINK) Witnesses Rising On-Chain Momentum As Price Surges: Glassnode

By Daily Hodl Staff

New data from market intelligence firm Glassnode reveals that decentralized oracle network Chainlink (LINK) is gaining on-chain momentum as its price rises.

In a new thread on the social media platform X, Glassnode says that LINK’s fundamentals are improving along with its active address momentum and rising price tag.

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“While LINK’s price surge was clearly driven by speculative and short-term market activity, its fundamentals are improving too.

Active addresses momentum is trending higher, with the short-term SMA (simple moving average) of 6,682 still above the long-term SMA of 5,878. That said, active addresses remain far below their 2021 peak of 23,416.”

Source: Glassnode/X

Glassnode goes on to note that LINK hit the highest price it has since 2022 and that its futures open interest has reached a new all-time high, signaling high trading activity.

“Chainlink’s token LINK has hit its highest price in nearly two years, and futures open interest (OI) just surged to an all-time high of $770.27 million!

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For context: LINK OI: $770 million. Toncoin (TON) OI: $259 million. Tron (TRX) OI: $356 million. LINK’s OI is 3x TON and 2x TRX, signaling massive trading activity.”

Source: Glassnode/X

The crypto analytics firm then breaks down how investors took profits from trading LINK, with ultra short-term and short-term investors realizing the most while long-term holders appeared largely dormant.

“We also saw significant profit-taking in the spot market. With $35.57 million in realized profits, yesterday marked the 2nd largest profit-taking event for LINK this year (trailing only Feb 11’s $40.39 million).

This profit-taking was driven mostly by speculative market participants: Ultra-short (1 day-1 week): 15.3% Short-term (3-6 months): 22.5%. Long-term holders stayed mostly quiet, except for the 1-2 year cohort (11.6%).”

Source: Glassnode/X

LINK is trading for $24.96 at time of writing, a 6.5% decrease during the last 24 hours.

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