- LINK sees increased attention in its Proof-of-Reserve service following the FTX crisis.
- Social mentions and weighted sentiment grew while new addresses maintained declines.
The crypto community has shown increased distrust in cryptocurrency exchanges following the FTX collapse. That had most crypto platforms resorting to Chainlink’s PoR (Proof-of-Reserve) technology, targeting higher user trust.
Chainlink’s (LINK) incorporation of proof-of-reserve for StablR is among the latest events in the cryptocurrency market. StablR is a decentralized finance (DeFi) liquidity protocol. The increased demand for proof of reserves may be lucrative for LINK in the longer term.
These developments triggered upticks in LINK’s social engagements. Lunar Crush, a social media analytic site, shows the asset’s social engagements increased by 6.24% within the previous week. Chainlink’s weighted sentiment also stayed positive within the past week.
That confirmed that the cryptocurrency community had more optimistic than negative narratives about the altcoin over the past seven days. Despite the increasing social mentions and positive sentiment, Chainlink endured continued slumps in new addresses over the past few days. Also, the network recorded declines in active addresses in that timeframe (Glassnode data).
Some Whale Actions
Whales have continued to present attention in Chainlink despite LINK’s mixed signals. For instance, the alt saw increased supply that leading addresses held. Moreover, the 500 Ethereum whales had held LINK worth $26 million as of November 25 (WhaleStats data).
Chainlink’s MVRV ratio grew also. That showed most wallets holding the token might accumulate profits if they decide to sell. Moreover, LINK recorded volume upticks, with the metric climbing to 331 million from 261 million within the previous week.
The volume growth saw increased Chainlink volatility. The asset recorded a massive volatility increase within the past few weeks. That confirmed that it might be risky to invest in Chainlink during this publication. While writing this content, LINK traded at $6.89.
The alternative coin rose by 1.14% since yesterday (Coinmarketcap data). Moreover, its volume slumped by approximately 14.7% within that timeframe.
The broad crypto space attempted revivals during this writing. The global cryptocurrency market cap increased by 1.54% over the last day to $842.99 billion. However, nothing supports extended surges, and bears could drag prices lower anytime.