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Assessing Chainlink’s Q1 performance and its impact on LINK

Published

2 years ago

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  • Chainlink saw growth in many sectors in Q1, as price feeds and other products helped generate revenue.
  • LINK remained unaffected as prices declined and selling pressure rose.

Despite the volatility in the crypto market, Chainlink has continued to offer its services to various sectors in the crypto space. Over the last few months, the protocol has collaborated with a huge number of players in the crypto space.

Realistic or not, here’s LINK’s market cap in BTC’s terms

Seeing some improvements

According to Eric Wallach, an analyst at Platoon Digital, Chainlink’s Key Performance Indicators (KPIs) have grown incrementally over the last month.

For instance, the protocol’s Total Value Secured (TVS), increased by 26% over the last quarter and reached an amount of $12 billion. Chainlink’s position as the dominant player in this sector was strengthened due to this, as it held a market share of over 75% in this domain.

Source: Platoon Digital

The high TVS collected by Chainlink

could be attributed to the performance of its Price Feeds product. According to Eric, the Price Feeds transactions surged by 8% over the last quarter.

However, the same could not be said about Chainlink’s other products, such as VRFs (Verifiable Random Function). Based on Dune Analytics’ data, it could be seen that the VRF requests on prominent networks such as Binance declined in the last few months.

Source: Dune Analytics

However, Chainlink could improve the demand for its products by improving its technology. Token terminal’s data indicated that the daily active addresses of the network have increased materially over the last few months. Along with that, the number of code commits being made on the network also surged during this period.

Active developments on the network could result in more users being attracted to Chainlink as its products saw improvements.

Read Chainlink’s [LINK] Price Prediction 2023-2024

Even though the protocol saw growth in various areas, LINK wasn’t able to see improvements in its prices.

Over the last three months, the price of LINK has declined, along with its network growth. Suggesting that new addresses have lost interest in buying the LINK token. The high MVRV ratio of the token also suggested that there may still be some selling pressure on the LINK token.

Source: Santiment

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