Chainlink: Can the latest upgrade help fulfill LINK price predictions?
- Chainlink grants early access to its staking mechanism upgrade.
- LINK has seen a decline in demand in the past few days.
Oracle network Chainlink [LINK] has launched early access to the v0.2 upgrade of its native staking mechanism. This comes after a nine-day priority migration period, which began on the 28th of November.
During this period, existing v0.1 stakers were allowed to move their staked LINK and accrued rewards to the new upgrade.
In a post on X, Chainlink confirmed that the staking v0.2 community pool was 100% filled a few hours after granting early access. Both v0.1 migrators and new stakers contributed 40.87 million LINK to achieve this.
The #Chainlink Staking v0.2 community pool has officially filled, with over 19M additional LINK staked in under 7 hours since Early Access opened ⬡
We want to thank the community—both v0.1 migrators and new stakers—for participating in the v0.2 launch and putting 40,875,000… pic.twitter.com/SpbFR7b7lX
— Chainlink (@chainlink) December 7, 2023
In the earlier published press release announcing the upgrade, Chainlink had noted that the v0.2 upgrade comes with an expansion of the staking pool size to 45 million LINK. This represents 8% of the altcoin’s current circulating supply.
LINK in the last 24 hours
Granting early access to the upgrade led to a surge in LINK’s daily active addresses on 7th December, according to data from Santiment.
AMBCrypto found that the daily count of addresses that completed transactions involving LINK spiked by over 100% between 6th and 7th December. This resulted from the uptick in demand for the token by those who wanted early access to the staking protocol upgrade.
This has, however, failed to have any significant impact on the altcoin’s value. According to CoinMarketCap, LINK traded at $15.95 at press time. The token recorded a slight 2% price growth in the past 24 hours.
Apart from the single-day surge in LINK’s daily active addresses recorded on 7 December, the token has witnessed a steady decline in demand in the past few days.
This is because LINK has consolidated within a narrow price range despite sharing a statistically significant correlation with Bitcoin [BTC], whose price has rallied significantly in the last week.
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For example, the token’s Money Flow Index (MFI) was pegged at 39.13, suggesting that spot market participants favored distribution.
Likewise, its Chaikin Money Flow (CMF) was below the zero line at -0.04. A CMF value below zero is often taken as a sign of weakness as it suggests an outflow of liquidity.