- LINK’s speed and supply in smart contracts has dropped dramatically over the past five days
- However, LINK held in smart contracts has grown significantly over the past four weeks.
It is often difficult to find winners in the crypto market during a major crash, but Chain link [LINK] maybe that. Even though its native currency LINK has suffered a significant decline so far this month, the Chainlink network has continued to see gains as a potential fix.
Lily Chain link [LINK] price prediction 2023-2024
Chainlink can facilitate proof of reserve which could be the perfect solution to help resolve some of the cracks exposed during the 2022 stock market crash. During a recent interview, Chainlink CEO Sergey Nazarov highlighted how proof of reserve could have helped investors identify the risks that led to FTX’s insolvency.
#ProofOfReserve highlights the black box of financial markets.@JillMalandrino and @SergeyNazarov discuss how #Chain link Reserve evidence can help prevent contagion and systemic risk: https://t.co/YCpEVrDrSL pic.twitter.com/0zkV8ouen5
—Chainlink (@chainlink) November 12, 2022
According to the CEO of Chainlink, proof of reserve can help overcome systemic financial risks, as well as the risk of contagion. Chainlink, as an oracle service provider, was able to facilitate widespread adoption of proof of reserve. Moreover, looking at the current market scenario, it could be seen as more of a necessity than an option. The good thing is that it also provides an opportunity for the market to adapt and grow from the recent challenges.
The need for widespread adoption of reserve proof further outlines a opportunity for adopting Chainlink. This underscores yet another reason why Chainlink’s offerings continue to add value and why the network has strong long-term potential. Long-term healthy adoption could contribute to more value for LINK.
Chainlink has seen healthy growth over the past 30 days. For example, its supply of LINK held in smart contracts has increased significantly over the past four weeks. The same was true for his speed.
The speed and supply of LINK in smart contracts has dropped significantly over the past five days. This reflects the impact of last week’s crash on Chainlink’s performance. But will we see a recovery this week?
One of the best ways to gauge demand was to look at the balances of top addresses. LINK’s supply of top addresses has seen a significant drop over the past five days. However, the good news was that the whales/top addresses no longer sell. However, we had not yet seen a return of strong buying pressure.
Chainlink’s transfer volume has also taken a hit over the past few days. Investors should therefore keep an eye on the volume of transfers to pivot as a confirmation of the recovery in demand.
LINK’s price action
The above observations may explain Current performance of LINK. LINK was trading at $6.17 at press time, which was still within the range of its 2022 low.
While there is still the possibility of further downside, LINK’s current price action has presented an opportunity given Long term chainlink potential.