Chainlink’s LINK is one of the most popular cryptocurrency assets across the industry today. Many people expect big things for this asset in the price department, although the current market slump isn’t helping much. Several metrics paint an intriguing outlook for this token, however.
LINK Exchange Withdrawals Pick Up
It is always essential for exchanges to provide sufficient liquidity. Not all crypto assets can live up to those goals, as there isn’t enough interest from traders for the majority of alternative currencies. For Chainlink’s LINK, however, things are a bit different. Recent exchange activity shows there is plenty of action going down, at least for those looking to withdraw this asset.
As there is now a one-month high for LINK withdrawals, one would expect the price to move up again. Unfortunately, it is impossible to determine where the funds are going. It may be individual users withdrawing funds or exchanges shuffling their wallets around. Many possible reasons can apply to a spike in exchange withdrawals, although the increase is rather telling.
Less than three weeks ago, users would withdraw roughly 30 LINK from exchanges per the seven-day moving average. Today, that amount has risen to 60.494, an increase of 100%. No one knows why this rate is doubling all of a sudden. Some traders may be saving up their LINK for better market conditions, or something else may be at play entirely.
Sustaining this increase in LINK withdrawals may prove somewhat challenging; however, There is a lot of bearish market pressure, and some traders are more prone to selling under these conditions. As this bearish trend affects all markets alike, now would be a good time for Chainlink’s asset to buck the trend. Doing so is challenging, but not impossible.
More LINK Deposits Appear
Similar to the LINK withdrawals increasing, there’s also a strong spike in new deposits. Not entirely surprising, given the current market conditions. However, what is surprising is how the deposits are still barely half as high as the recent withdrawals. That may be a sign of things to come, although interpreting this data will always be tricky.
This surge in LINK deposits is a bit less outspoken than the withdrawals. Going from 20 LINK in exchange deposits to 32.494 is an increase by just over 60%. The withdrawals, however, have increased by 100%. If these rates keep up, the available supply on exchanges will continue to decrease at a slow and steady rate, similar to what is happening to Bitcoin.
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