Key Points
- Chainlink’s recent update with Ethereum cross-chain transfers has led to an increase in new addresses.
- The price of Chainlink’s token might drop below $14 in the short term due to market turbulence.
The project Chainlink has seen an increase in new addresses since April 11th after it announced an update with Ethereum cross-chain transfers.
The number of new Chainlink addresses was 778 on April 10th. However, this number has increased to 1123, indicating an improved adoption which could potentially increase the demand for the token.
Reason for the Increase
Chainlink had been struggling to attract new users to its ecosystem since hitting a yearly high in March. The increase in new addresses coincides with the project’s recent integration with Ethereum (ETH).
The day the new addresses began to rise, Chainlink announced that the Cross-Chain Interoperability Protocol (CCIP) has been extended to Ethereum and some Layer-2 networks under the blockchain. This protocol enhances the bridging of assets on multiple blockchains.
Impact of the Development
The increased traction was not the only impact of this development. There was also a change in the smart contract supply, which increased from 52% at the beginning of April to 53.81% at press time.
With this increase, LINK holders might be able to bridge more assets to other chains, including Ethereum. However, LINK’s price might have to cope with market turbulence in the short term.
The state of the exchange inflow and outflow impacts the token price. An increase in exchange inflow suggests traders are considering selling their assets, while a decrease suggests the opposite.
At press time, LINK’s exchange outflow was 4086 while the inflow was over 13,000 tokens. This disparity indicates sell-offs in the market, which could potentially lead to LINK’s price falling below $14.
However, if selling slows down and accumulation occurs, the price might bounce back.
