Chainlink on the Rise: Price Soars on Growing Trading Activity and Crucial Metrics

Chainlink (LINK), the market-leading oracle, is experiencing a moment of traction. An in-depth analysis by Glassnode, a leading on-chain analytics platform, has revealed significant growth in LINK network activity and key metrics.

This increase coincides with a price rally, indicating that the digital currency’s fundamentals are strengthening. “Chainlink’s $LINK token has reached its highest price in nearly 2 years, and Futures Open Interest (OI) has just hit an all-time high of $770,27 million!” the report noted. According to the data, LINK’s OI was $770 million while TON and TRX were $259 million and $356 million, respectively. In this scenario, the LINK network’s OI is 3x TON and 2x TRX, signaling massive trading activity. Glassnode also highlighted a significant profit in the spot market.

“We also saw significant profit-taking in the spot market. With $35,57 million in profits taken, yesterday marked the 2nd largest profit-taking event for LINK this year (behind only the $40,39 million on February 11th). This profit-taking was driven primarily by speculative market participants: Ultra-short (1d-1w): 15.3%; Short-term (3-6m): 22.5%; Long-term holders remained muted, except for the 1-2 year cohort (11,6%).

Analysts still emphasized in the analysis that while LINK’s price rise has clearly been driven by speculative and short-term market activity, its fundamentals are also showing notable improvement. “Active addresses momentum is trending to the upside, with the short-term SMA of 6.682 still above the long-term SMA of 5.878. That said, active addresses remain well below their 2021 peak of 23.416.”

At the time of publication, Chainlink’s price was trading at $28,02, down 0.8% over the past 24 hours. The cryptocurrency is up 18.8% in seven days.

It is worth remembering that LINK is receiving massive investments from the WLFI protocol. Two cryptocurrencies are attracting attention in the market with their explosive price increases while it was recently revealed that World Liberty Financial (WLFI), a decentralized finance (DeFi) initiative linked to Donald Trump, is investing massively in these tokens.

On December 12, World Liberty made waves by acquiring $12 million worth of cryptocurrencies. The transaction included the purchase of Ethereum (ETH), Chainlink (LINK), and Aave (AAVE) with USD Coin (USDC). According to on-chain data from Etherscan, these acquisitions had an immediate impact on the market. AAVE and LINK have been experiencing impressive growth in recent days and are reaching new milestones.