The decentralised oracle network Chainlink (LINK) has been in an odd condition for the past 500 days. The phrase “crab market” is frequently used in the cryptocurrency industry to refer to an asset that travels for a lengthy period of time horizontally without experiencing any notable gains or losses. This situation seems to be where Chainlink is stuck.
Chainlink’s price performance over the past 15 months has exhibited constant sideways movement. Beginning in March 2022, the price of LINK fluctuated at $15.12 until temporarily reaching $16.49 at the conclusion of the month. The price fell in the following months, though, reaching as little as $5.28 in June 2023. LINK is now trading at around $7.09 as of August 7, 2023, with no discernible upward direction.
For a digital asset, this constant sideways movement might be harmful. It may result in dwindling investor interest, lower trading activity, and possibly future asset speculation. Long periods of inactivity might sometimes inspire ideas of outside price manipulation. Even if there is no hard proof to back up such assertions for Chainlink, the lack of price movement is concerning.
However, Chainlink’s use cases continue to be solid. It serves as a decentralised oracle network that links smart contracts with actual data, enabling blockchain applications to safely communicate with outside data sources. For many DeFi initiatives, insurance agreements, and gaming apps, to mention a few, this feature is essential.
With the knowledge that Chainlink’s price movement is real and not fraudulently controlled, the rumours surrounding Chainlink’s price performance have been dispelled. However, the question of how to revive LINK’s price still stands.
In order for Chainlink to exit the “crab market,” a number of things must come together. Strategic alliances, increased use of its oracle services, and favourable DeFi market developments can all serve as catalysts. Furthermore, as the crypto industry develops, there will be a greater and greater need for trustworthy oracle services, which might set up Chainlink for a huge upswing.
