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Chainlink on-chain activity ramps up after news of improved staking system

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the chain is simple announced the first part of what has been called “Chainlink Economics 2.0”.

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The announcement explains an update to the current LINK staking mechanics. The planned roadmap includes new staking features such as staking and redistribution, user fee rewards, node delegation, and reputation tracking, among others.

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This positive news came at a great moment as the bear market treated LINK like most crypto assets, with a -65% price drop YTD. As the price of LINK stabilized last month, large holders (holding at least 0.1% of the circulating supply) took advantage to continue accumulating more LINKS.

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Since the release of the staking news, these whales have swallowed over 3.39 million LINKs, which is over $28 million at current prices:

Interest in Chainlink has grown significantly not only among their large holders, and as you can see from the following indicator, daily transactions using LINK increased by 129% from an average of 2500 transactions per day to over 3200 just yesterday. Location dominance leans slightly towards Western time zones. This is analyzed taking into account the date of each transaction and its classification by Western or Eastern time zones.

East vs West indicator for June 8, 2022 according to IntoTheBlock Chainlink indicators.

As for potential resistance and support price levels, we like to check on-chain metrics instead of technical analysis signals. The on-chain equivalent of these resistances and supports can be determined using the In/Out of the Money Around Price (IOMAP) indicator.

This indicator covers buckets within 15% of the current price in both directions. Thus, IOMAP identifies key buying and selling areas that can act as support and resistance levels.

IOMAP indicator for June 8, 2022 based on IntoTheBlock Chainlink indicators.

As seen in the chart above, most of LINK’s offer (85.60%), purchased within 15% of the current price, was purchased lower, and only 14.20% was purchased higher.

This could signal that selling pressure has been minimized in case LINK’s price rises as much of the supply was bought lower and will still be profitable. As behavioral economics points out, traders are more willing to let their positions run when they are in profit.

Leaving the short term aside and looking at the long term, LINK is a particular distribution of holdings that is commonly seen in crypto assets like BTC or ETH, which are mostly viewed as a store of value by investors.

This figure represents the number of addresses held for over a year, which currently represents the largest group of holders. In the table below, they are classified as hodlers, while those who hold between 1 and 12 months are referred to as cruisers and those who hold for less than a month are referred to as traders.

Addresses by time as of June 8, 2022 according to IntoTheBlock Chainlink indicators.At the moment, 65% of addresses with a LINK are held for more than a year. This shows the long-term confidence of the majority of LINK holders in the Chainlink ecosystem. Similarly, the rate news lays out a long-term plan that will take time to complete and will begin to bear fruit in the second half of 2022, but will continue to expand its planned capacity, likely beyond 2022. it is interesting to follow the development of events and how the LINK price reacts to it.

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