Oracle service provider Chainlink (LINK) has been under severe pressure with the altcoin market correction over the last month. The LINK cryptocurrency has corrected more than 60% now from its all-time high of $50 on May 10, 2021.
As a result, LINK has slipped multiple ranks from the top ten cryptos to now being the 15th ranked cryptocurrency in the market. This comes amid the declining address activity and declining network growth.
On-chain data provider Santiment reports a significant drop in the number of new LINK addresses created on the network which ultimately denotes the drop in user adoption as Chainlink loses traction.
Santiment report shows that the Chainlink network growth has dropped to levels last seen in October 2021. “Less and less addresses were interacting with LINK for the first time. This doesn’t look like a great sign,” it notes. Besides, with the October 2020 bottom, there was a bullish divergence as the LINK price continued to surge while the network growth remained stagnant.
The Sharp Fall in LINK Active Addresses
In terms of the average active addresses, the LINK price has also tanked significantly. Since April 2021, the LINK active addresses have tanked by more than 50%. Now, only 5K addresses are active on a daily basis in comparison to 13K active addresses in April.
Amid the broader market this week, the exchange inflows for LINK also shot up significantly as the cryptocurrency was subjected to panic selling. Besides, there was a big drop in the Chainlink Network Prfot Loss Indicator. As Santiment reports:
“A big drop in NPL detected on Thursday. That should mean the average loss of LINK tokens moved this day is significantly higher than usual. A significant loss combined with Exchange Inflow spikes could indicate crowd fear, it’s good for price”.
At press time, LINK is trading 5.22% up at a price of $18.88 with a market cap of $8.1 billion.
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