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.

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.