Is it too late for Chainlink?

February 8, 2022 - Around 2 mins mins to read

After a relatively painful start to the new year for the crypto market, many top assets have been gradually recovering over the past 2 weeks. Typically the native token LINK of Chainlink’s decentralized oracle network. It has rallied over 14% in that time, after losing over 25% of its value in January. LINK even breached the $19 mark, which caused analysts to become bullish again on its price action.

Extensive development activities

This resurgence could be due to a larger market trend. Interestingly, on-chain analytics platform Santiment showed price growth accompanied by increased development activity on Chainlink. Even the significant number of daily updates on GitHub on Feb. 7 surpassed that of Ethereum, the network on which Chainlink was built.

The source: mood

LINK developers sent an average of 304 major updates per day, surpassing not only Ethereum but also the most popular blockchain, Bitcoin.

This win is all the more significant given that Ethereum itself is also accelerating development activities due to its upcoming merger with ETH 2.0. It looks like Chainlink is taking it seriously timetable Developing and working towards the introduction of staking and a cross-chain interaction protocol on the network.

Too late for Chainlink?

However, Chainlink’s social sentiment has not been similarly optimistic as the metric has been steadily falling since mid-January.Santiment data shows that social volume has fallen to 35 at the time of 1.

Weighted Psychosocial also saw a similar drop, falling below 1 at the time of writing. However, it is known that price often bottoms when the index hits such lows. This gives LINK the potential to reverse.

Social mass (pink) and weighted psychology (red) | Source: Sanbase

Surprisingly, network growth dropped dramatically. Network Growth calculates the number of new addresses that have transferred tokens for the first time, which essentially shows the status of network acceptance. The index has been in freefall since mid-January, reaching a low not seen since March 2020. This is despite the large number of projects that have recently integrated Chainlink’s services into their networks.