2020-7-21 05:00

After the price of its native token LINK reached its all-time high last week, Chainlink has seen its on-chain metrics skyrocket. Data from crypto analytics company IntoTheBlock has shown that the number of large transactions on Chainlink has increased over 15 times in the past three months, matching the growth seen in the number of active addresses on the network.

Chainlink has been on a roll in the past few months, seeing an unprecedented rise since it capitulated in mid-March during the market downturn. Aside from gaining an excess of 400 percent, its native cryptocurrency LINK has also seen a huge increase in use.

Data from cryptocurrency analytics company IntoTheBlock has shown that Chainlink recorded the largest number of transactions greater than $100,000 since July 2019. On Jul. 13, the network recorded 300 large transactions—an increase of almost 1500 percent since the beginning of the year.

Graph showing the number of large transactions on Chainlink from Jan. 1 to Jul. 20

Given the fact that the large transaction volume on Chainlink has remained more or less the same even when its price reached its all-time high, the phenomenon could be explained by an influx of new users to the network.

Graph showing the large transaction volume on Chainlink from Sep. 2017 to Jul. 2020. Increase in active addresses indicate a healthier network

Chainlink’s latest price rally isn’t backed just by speculation—the network has seen its stable on-chain metrics gain a significant amount of strength in since March. This could mean that the 400 percent YTD increase won’t be followed by an equally steep consolidation and that LINK will spend most of the year above its current $8 level.

Graph showing LINK’s price from Jul. 2019 to Jul. 2020 (Source: TradingView)

This theory is backed by the fact that the number of new addresses and daily active addresses on the network has skyrocketed —data from IntoTheBlock has shown that there were over 9,500 active addresses on Chainlink on Jul. 16. On the same day, the network recorded an ATH of 4,590 new addresses.

Graph showing the number of new addresses and daily active addresses on Chainlink from 2017 to 2020 (Source: IntoTheBlock)

This indicates that the Chainlink network is growing at a healthy pace. While the overall number of addresses is increasing, the more important metric is the one showing the increase in the number of active addresses.

The post The number of large transactions on Chainlink increased 15x in 2020 appeared first on CryptoSlate.

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