Chainlink’s Price Soars as Trading Activity and Fundamentals Reach New Heights

Recent analysis from Glassnode, a prominent market intelligence firm, highlights significant on-chain growth for Chainlink (LINK), driven by rising prices and improving fundamentals.

The firm points out that while the price increase of LINK is largely fueled by short-term market speculation, there are underlying signs of strength.

Active address momentum is climbing, with the short-term moving average (SMA) of 6,682 addresses staying above the long-term average of 5,878. However, it’s still a long way from the 2021 peak of 23,416 active addresses.

While #LINK’s price surge was clearly driven by speculative and short-term market activity, its fundamentals are improving too.

Active addresses momentum is trending higher, with the short-term SMA of 6,682 still above the long-term SMA of 5,878. That said, active addresses… pic.twitter.com/c9sUQK6YKy

— glassnode (@glassnode) December 12, 2024

Glassnode further notes that LINK has reached its highest price since 2022, with its futures open interest surging to an all-time high of $770 million. This marks LINK’s open interest as three times that of Toncoin (TON) and double that of Tron (TRX), underscoring significant trading activity.

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Additionally, a closer look at the market behavior shows that speculative investors have been capitalizing on LINK’s price increase. Short-term and ultra-short-term traders have realized the most profit, with $35.57 million in profits logged, marking the second-largest profit-taking event for LINK this year, just behind February’s $40.39 million.

Meanwhile, long-term holders, particularly those holding for over a year, remain largely inactive.

Alexander Zdravkov

Alexander has been working in the crypto industry for three years, during which time he has established himself through his active participation in monitoring market dynamics and technological innovations. His interest in cryptocurrencies and new technologies is not just a professional commitment, but a deep personal passion. He follows the news in the sector daily, analyzes trends, and is excited about every new step in the development of blockchain solutions. His enthusiasm drives him to continuously learn and share knowledge, as he sees the future in digital finance and its role in global transformation.