• Chainlink [LINK] recently saw a significant increase in price due to an increase in the number of addresses interacting with the network.
• Despite this positive development, the demand for Chainlink’s Verifiable Random Function (VRF) services has decreased.
• Despite the decrease in demand for VRF, the number of active users utilizing Chainlink as an oracle is still on the rise.
The decentralized oracle network, Chainlink [LINK], has recently seen a surge in price over the past few days. This increase in price can be attributed to the growing number of addresses interacting with the network, according to data from Santiment. Although this is a positive development, it is important to note that this surge in price may be short-lived due to new developments.
One factor that has likely caused the uptick in price is the increasing number of LINK addresses within the network. According to Santiment, this behavior of the addresses started two months ago, and over time, this behavior could have a positive impact on the prices of Chainlink. Despite this increase in address interactions, the interest in Chainlink’s VRF (Verifiable Random Function) services has declined. According to data from Dune Analytics, the number of monthly VRF requests fulfilled by Chainlink has dropped from 43,109 to 8,094 over the last few months.
Despite this decline in demand for VRF, the number of active users utilizing Chainlink as an oracle continued to grow. At the time of writing, 724,854 active users were using the Chainlink Oracle according to Dune Analytics. This suggests that while demand for one service may be decreasing, overall use of the network is still on the rise.
As per Santiment’s data, the network growth of LINK dropped in the past month, which shows a decrease in the number of times new addresses transferred LINK for the first time. This could indicate that the increase in price may not be sustained in the long run, as the number of new addresses is not increasing.
Whilst the demand for Chainlink’s VRF services has decreased, the growing whale interest and collaborations could be another reason for the price spike. For example, the World Economic Forum recently announced a partnership with Chainlink, which could be seen as a major endorsement for the network. Additionally, Coinbase recently announced the listing of LINK on its Pro platform, which could be another positive indicator for the future of Chainlink.
In conclusion, the recent spike in Chainlink’s price can be attributed to the growing number of addresses interacting with the network, as well as increasing whale interest and collaborations. Despite this positive development, it is important to note that the demand for VRF services has decreased and the network growth of LINK has dropped in the past month. This could indicate that the increase in price may not be sustained in the long run, as the number of new addresses is not increasing.