As a researcher with years of experience in the cryptocurrency market, I must say that the recent surge in Chainlink (LINK) is indeed intriguing. Having closely monitored the market trends and analyzed various metrics, it appears that the bullish sentiment is validated by both short-term speculative activity and improving fundamentals.
On December 12th, Chainlink stands out as a significant gainer due to its price reaching a nearly three-year peak. This surge coincides with the all-time high in futures open interest.
According to data from the on-chain and financial metrics provider Glassnode, the open interest for Chainlink (LINK) futures reached an impressive $770.27 million as LINK attained its highest prices in nearly two years. Open interest, a gauge of market activity, offers insights into investor sentiment, suggesting that it is currently optimistic regarding LINK.
According to Glassnode’s data from December 11, it was observed that the Open Interest for Chainlink was almost three times higher than Toncoin (TON) and twice as much as TRON (TRX). To be more precise, the futures open interest for TON and TRX were $259 million and $356 million respectively.
On December 12th, the value of LINK surged to $29.45, maintaining its upward trend since it last reached similar prices back in January 2022.
Glassnode suggests bulls retain the upper hand due to improving fundamentals.
Although there has been a recent surge of profits in the spot market, long-term investors have generally remained unfazed. According to analysts, this selling was primarily driven by speculative traders. As speculation and profit-taking reached their peak since February, long-term holders mainly chose not to participate.
Although LINK’s price increase seems to be primarily fueled by short-term speculation, it’s worth noting that its underlying strengths are also strengthening. The pace at which active addresses is rising is noteworthy, with the 6,682 short-term moving average staying above the 5,878 long-term moving average. However, the number of active addresses is still significantly lower than its 2021 high of 23,416, according to Glassnode’s latest report.
Currently at the time this is being written, Chainlink has seen a 13% increase in value today. Over the last week, it has risen by 97%. Looking back further, over the past month, it’s up by approximately 30%.
Positive developments have emerged for the oracle network following strategic collaborations with key ecosystem partners like World Liberty Financial. In a move inspired by Donald Trump, the associated cryptocurrency project disclosed in November its intention to integrate Chainlink’s technology, aiming to facilitate widespread adoption of decentralized finance.
Beyond that, I’ve also been excited to learn about Chainlink Labs’ partnership with Emirates NBD Digital Asset Lab. This collaboration is aimed at streamlining asset tokenization and digital asset management. Furthermore, it’s worth noting some of the significant integrations and collaborations they’ve been involved in with leading institutions like Swift, SBI, UBS, and many more.
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2024-12-12 18:42