Huge Spike In Network Activity Will Boost Chainlink’s Price Higher

A huge spike in network activity is the latest ingredient that will boost the price of Chainlink even higher. The intense uptrend for the cryptocurrency seen over the past few weeks, allowed LINK to set a new all-time high once again, as we are reading more in the upcoming Chainlink news.

The cryptocurrency reached $6.50 before facing rejection that sparked a slight selloff, but the asset is now in a process of going back up to these highs. New data shows that a huge spike in network activity will help boost the cryptocurrency higher, signaling that the latest price movement of the multi-year high is being driven by fundamental strength rather than solely investor hype. The four highest network activity in more than a year has been posted by LINK over a period of 6 days. This also comes as the top investors in the cryptocurrency continued adding to their positions in a trend indicated by the concentration of Chainlink tokens among the top one percent of investors.

It was quite an interesting year for chainlink. The cryptocurrency managed to extend the parabolic momentum started in 2019 and even outperformed virtually another major altcoin in the past few years. Just two days ago, the token was able to set an all-time high when it rallied up to $6.50. At this price level, it faced some strong selling pressure which pushed back below $6.00. Buyers gained the upper hand over the bears and LINK is now trading up over 2% with a current price of $6.13. One group responsible for the price climb can be the top investors in the cryptocurrency.

The data from Glassnode shows that the top one percent of Link addresses hold 77% of the token supply. Looking at the charts you can see it appears that top addresses were increasing their exposure over the past few weeks. The gains LINK made over the past week, seem to have been driven by the increase in on-chain network activity. Blockchain data platform Santiment also explained that LINK saw some of its highest network activity outputs in the past week:

 “LINK is continuing to see sky-high daily active addresses, indicating just how active the network has been. The four highest outputs in network activity over the past year for Chainlink have occurred in the past six days.”