Chainlink is down 3% from its all-time high, but on-chain and derivatives indicators show there is increasing interest from investors.
Chainlink (LINK) has had a pretty rough month, dropping as much as 45% after marking a $37 all-time high on Feb. 20. While the recent losses may look surprising when compared against other altcoins’ gains, LINK still managed to rally 640% over the past nine months.Therefore, there should be no reason to interpret the failure to sustain above $32 as a trend reversal. On-chain indicators like daily active addresses and transactions, along with the open interest on futures contracts, continue to display strength.Chainlink price at Binance, USDT. Source: TradingViewChainlink was also very well positioned to benefit from the decentralized finance (DeFi) boom. Many of the price feed that connect separate blockchains and decentralized exchanges utilize their price oracles for price discovery.The project was proactive when Ethereum network fees skyrocketed and quickly adapted to “off-chain reporting,” which replaced on-chain data aggregation with an off-chain consensus round. As previously reported by Cointelegraph, “The aggregated data is then passed on to the blockchain, where a smart contract verifies that a quorum of nodes agreed on this version of the data.”Even with strong growth in DeFi and healthy on-chain indicators, the impressive thing is that LINK price is struggling to retake the $30 support. On-chain data displays strengthTransfer value is a leading on-chain indicator measuring user activity as it adds up all the coins moved daily. Analysis from CoinMetrics provides more precise data by adjusting these figures …
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