Chainlink (LINK) Price Falls Following a Short-lived Massive Spike

Chainlink (LINK) Price Falls Following a Short-lived Massive Spike
  • Token prices dropped by 6% in only 7 days, from $7.84 on May 16 to $6.84.
  • The market value fell from $3.66 billion on May 16 to $3.45 billion.

By linking smart contracts to real-world data and events, payments, and off-chain computations, Chainlink aims to enhance the functionality of blockchains in a highly tamper resistant and trustworthy way.

A total of 16 integrations were made between May 16 and May 22 for three Chainlink services, according to Chainlink’s Adoption Update on May 22. Chainlink Feeds, Chainlink VRF, and Chainlink Keepers were all part of these services. Furthermore, it was disclosed that these connections were done on Ethereum, Polygon, BNBChain, and Fantom, among others.

Bears Dominating the Charts

LINK/USDT: Source: TradingView

The LINK token’s price has fallen in the previous seven days since implementing these integrations. Token prices dropped by 6% in only 7 days, from $7.84 on May 16 to $6.84. Moreover, it is 86 percent of the way to its all-time high of $52.88. And if this momentum of cross-chain integrations and use cases is maintained, it may be on its way to the same again.

In addition, the market capitalization fell steadily during the same time. Despite the many Chainlink Network integrations, the market value fell from $3.66 billion on May 16 to $3.45 billion. The LINK token’s price dropped during the previous week, yet there was a positive divergence over that time frame. Any chain or asset needs backing from investors during a down market, and Chainlink has that support right now.

In addition, unlike other cryptocurrencies, most transactions completed on-chain have been profitable for the greater part of this year. As for losses, except from the May 13 catastrophe, they’ve been rather low. However, this does not change the reality that investors continue to suffer losses. At just $11,004, the lowest level since December 2018, the average balance at each address has dropped.

An engineering graduate who is passionate about writing and loves the very existence of crypto. Trading forex currency keeps me busy when I am not writing and analysing the crypto world.