Data shows Chainlink address activity has returned to 2021 levels recently, a sign that could turn out to be bullish for the asset’s value.
Chainlink Daily Active Addresses at High Levels Recently
According to data from Santiment on-chain analytics firm, this rise in LINK activity started around two years ago. The relevant indicator here is the “daily active addresses,” which tells us the total number of addresses that were involved in a transaction on any given day.
The metric counts both receivers and senders in its calculation. It only accounts for unique addresses in data. This means that wallets that participated multiple times in the same day’s transfers are only counted once. This eliminates duplicate transactions and other noise and gives a better picture about the network activity.
If this indicator has a high value, it means that a large number daily users are using the blockchain in some way. This trend indicates that the market is active at the moment.
Low values of the metric can also indicate that not many users are trading at the moment. This can indicate that there is little interest in crypto at the moment.
Here is a chart that shows how Chainlink daily active addresses have changed over the past few years.
It seems like the metric’s value has increased in recent weeks. Source: Santiment on Twitter| Source: Santiment on Twitter
As you can see, Chainlink’s daily active addresses remained at very low levels throughout 2022. This was because the investors weren’t finding the coin that interesting to trade during the bear market consolidation.
However, the number of unique users who transact on the network every day has increased significantly in the past few months. These values are very similar to the ones seen during the bull run in 2021.
High network activity is generally bullish for the crypto price in the long-term because it creates a more sustainable ground for future growth. LINK has rallied in the past week, which could indicate that the high activity of holders in the last two-months may be paying off for crypto.
Also, while a high number of users are important for starting price moves like this, it’s also true that they are needed during such rallies to keep them going. If the Chainlink daily active addresses are at the current high levels it could mean that the current rally will continue to gain momentum.
LINK Price
Chainlink traded at $6.3, up 13% since the last week.
The asset’s price seems to have risen in recent days. Source: LINKUSD at TradingView| Source: LINKUSD on TradingView
Featured image by Paolo Feser, Charts from TradingView.com, Santiment.net