Analyzing Chainlink’s state of affairs as LINK surges

• Interest in LINK grew as prices surged.
• Network growth and velocity fell, which could hinder further growth.

Chainlink [LINK] saw a massive surge in its price over the last few weeks owing to the general positive sentiment in the market.

Traders have high hopes

According to Santiment’s data, the price of LINK spiked by 10% in the last week. This positive price movement is a reflection of growing interest in and demand for Chainlink.

The implications of this upward trend are noteworthy. As LINK’s value increases, it becomes a more attractive investment option. Investors see the potential for higher returns, which can attract more capital into the Chainlink ecosystem.

Moreover, the rising social volume indicated increased discussions and excitement surrounding Chainlink. This is typically a sign of growing interest and can lead to a broader adoption of the network and its services.

🥳 The majority of top 100 #crypto assets are up +10% in market value over the past week. Some notable standouts have been $LINK, $OKB, $KAS, $RUNE, and $NEO. Pay attention to social volume rises as well, where #FOMO from new entries into the space have extended this rally. pic.twitter.com/z8SVl0q8mu

— Santiment (@santimentfeed) November 9, 2023

At press time, LINK was trading at $14.447. The price of LINK has shown higher highs and higher lows over the past week, showcasing a bullish trend.

The network growth of LINK, however, fell sharply in the last few days. This suggested that despite the sudden hike in price, new users were showing less interest in the LINK token.

In terms of velocity, there was a decline observed as well. This showed that the amount of times LINK was being transferred had fallen.

The recent decrease in LINK’s network growth suggests that fewer new users are entering the LINK ecosystem.

This could potentially slow down its long-term growth and adoption.

The decline in velocity, indicating fewer transfers, might mean that there’s less activity involving LINK. Despite the price increase, these trends could pose challenges for LINK’s future adoption and use.

Source: Santiment

However, Chainlink’s staking v2 could attract new investors to LINK.

Read Chainlink’s [LINK] Price Prediction 2023-24

Chainlink plans to launch LINK staking v0.2 with a big pool of 45 million LINK tokens, worth roughly $650 million. Out of this, 40.875 million LINK goes to the community, and the rest to Chainlink node operators.

If you’re in the community, you can stake 1 to 15,000 LINK tokens, while node operators can stake between 1,000 and 75,000 LINK tokens. This move aims to give more people a chance to stake their tokens and help secure the Chainlink network.