Chainlink: Why Price, Network Activity Move in Opposite Ways

in its latest ‘Adopt an update,’ Chainlink informed its users about a series of integrations for some of its products between July 25 and 31.

According to the update provided, Chainlink ended the month with 14 integrations across five different chains for its four services — Chainlink Data Provider, Chainlink Keepers, Chainlink VRF, and Chainlink Price Feeds.These include avalanche, BNBC chain, Ethereum, optimismand polygon.

With the price of many crypto assets surging in July, is the oracle’s native token, LINK, any different?

finally grown up?

In early July, the price of LINK was $6.07. However, as the bullish retracement intensified, the price of LINK was able to increase by 25% in 31 days. At the end of the month, the coin changed hands at $7.64.

During the period under review, the trading volume of LINK tokens hit daily highs of 965.05 million and 1.07 billion on July 19 and July 29, respectively. During the 1-month window, the token’s trading volume increased by 26%.

At press time, LINK is ranked 24th with a market cap of $3.34 billion, and its market cap has risen 27% over the past month.

Source: Santiment

On the daily chart, the price of the coin is down 8% over the past 24 hours. At the time of writing, buying pressure also appears to be waning. The coin’s Relative Strength Index (RSI) and Money Flow Index (MFI) chased lower at 52.28 and 52.35, respectively.

Chainlink’s native token changed hands at $7.12 and is currently trading at July 2020 levels. This year alone, the coin is down more than 60%.

Source: TradingView

On the chain?

Although Chainlink’s products have a series of weekly integrations, from mood Reveals a drop in development activity on the web in July.

Finishing the month with 211 development activity, the coin dropped 9% over a 31-day period.

Additionally, LINK failed to see any significant traction in the social space over the last month. On July 25, after its social dominance and social volume rose to highs of 3.83% and 2,878, respectively, they both fell sharply.

The coin ended the month with a social dominance of 0.422% and a social volume of 268.

Source: Santiment

Now, LINK has recorded a gradual decline in activity on the network despite the price increase over the last month. For example, daily new addresses created on the network fell by 58% last month.

Additionally, the unique addresses trading LINK on a daily basis dropped by 55% within the 31-day window.

Source: Santiment

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