After experiencing significant fluctuations over the past year, Chainlink (LINK) has recently outperformed other altcoins. LINK has gained an impressive 35.44% over the past week, leaving much of its competition in the dust.

LINK continues to rise and is up 12.64% in the last 24 hours. At the time of writing, one LINK trades for US $10.08 ($15.96), a huge change from just under US $7.50 ($12) a week ago.

Source: CoinMarketCap

LINK in “Accumulation Trend”?

The recent activity on the Chainlink network provides some insights into the surge in the price of LINK. A report by on-chain analytics platform, Santiment, reveals that Chainlink has seen a spike in activity, with notable increases in whale transactions, active addresses, and trading volume, reaching three-month highs this past weekend.

Trader Michaël van de Poppe chimed in, noting that the current setup indicates a breakout that surpasses the previous highs, establishing a new annual peak. He stated it is typical in such situations to witness some downturns, as investors often begin to cash in on their profits in these zones.

If this leads to a price drop, van de Poppe said he would be keen on purchasing when the price hits between US $8 ($12.66) and US $8.50 ($13.45). He predicts after this, the price could rise to reach around US $12 ($18.99).

The fact that the price of LINK is going up, hints that there might be more people buying and holding onto LINK than selling it. This tendency to buy and hold is often termed an “accumulation trend.”

While accumulation can suggest a bullish sentiment (i.e., the expectation that the price will rise), other external factors or changes in market sentiment can lead to price fluctuations, both upwards and downwards.

New Updates Strengthen Fundamentals

Chainlink has recently introduced significant updates to its ecosystem. Central to these updates is the enhancement of its staking mechanism, where validators verify real-time data and produce tamper-resistant “oracle reports” that reflect real-world states.

This staking upgrade offers validators increased flexibility and security. Rewards for staking LINK will now have a dynamic structure, depending on the number of users participating.

Chainlink is also expanding its staking pool by nearly 80% and simplifying the process for investors to withdraw their staked LINK. Another major development is the launch of “Data Streams” on the Arbitrum layer 2 platform, aiming to enhance network latency and provide live market data to decentralised exchanges and DeFi platforms.

Chainlink co-founder Sergey Nazarov highlighted that this product aligns with the core values of Web3 by ensuring a fast, transparent, and decentralised infrastructure.

Solana is Closely Following LINK’s Rise

However, LINK isn’t the only altcoin experiencing a surge over recent days. Solana (SOL), another major player is also performing very well against the market and is up 32.93% week-on-week. Currently SOL trades for US $29.08 ($46.02).

Source: CoinMarketCap

Solana has had several bullish announcements recently, like the Visa integration, where the blockchain will offer USDC settlement with low fees and high speed.

Anatoly Yakovenko, Solana’s co-founder,also emphasised the potential of crypto payments for content creators in a talk with Austin Federa of the Solana Foundation. Highlighting the excessive control platforms like Twitter and TikTok have over creator revenue, Yakovenko advocates for simpler, direct financial transactions between creators and their audience using crypto.

The post Chainlink On the Rise, Why Is LINK Outperforming Other Altcoins? appeared first on Crypto News Australia.

Filed under: Bitcoin - @ October 23, 2023 2:57 am