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Chainlink v0.2 Upgrade Expands Staking, LINK Demand Decreases

Chainlink v0.2 Upgrade Expands Staking, LINK Demand Decreases

Paula Winkler • 12.12.2023 16:28

Chainlink: How Does the Latest Upgrade Influence LINK Price Predictions?

Chainlink, a well-known oracle network, recently introduced the v0.2 upgrade of its native staking mechanism. This upgrade could potentially influence LINK price predictions.

Early Access to Staking Mechanism Upgrade

Chainlink has released the v0.2 upgrade of its native staking mechanism for early access. This followed a nine-day priority migration period that began on November 28. During this time, existing v0.1 stakers could transfer their staked LINK and accumulated rewards to the new upgrade.

Community Pool 100% Filled

In a post, Chainlink confirmed that the Staking v0.2 Community Pool was 100% filled a few hours after granting early access. Both v0.1 migrators and new stakers contributed 40.87 million LINK to achieve this goal.

Expansion of Staking Pool

With the v0.2 upgrade comes an expansion of the staking pool to 45 million LINK, which represents 8% of the current circulating supply of the altcoin.

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LINK Address Activity Increases

Early access to the upgrade led to an increase in the daily active LINK addresses on December 7. The daily number of addresses completing transactions with LINK increased by over 100% between December 6 and 7.

LINK Price Remains Stable

Despite the increase in activity, this has not had a significant impact on the value of the altcoin. According to CoinMarketCap, LINK was trading at $15.95 at the time of the press release. The token recorded a slight price growth of 2% in the last 24 hours.

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Decline in Demand for LINK

Apart from the one-day increase in daily active LINK addresses on December 7, the token has experienced a steady decrease in demand in recent days. This is due to LINK consolidating within a narrow price range despite a statistically significant correlation with Bitcoin, whose price has significantly increased in the last week.

Indicators Suggest Weakness

For example, the token’s Money Flow Index (MFI) was at 39.13, suggesting that spot market participants prefer distribution. Likewise, the Chaikin Money Flow (CMF) was below the zero line at -0.04. A CMF value below zero is often seen as a sign of weakness as it suggests an outflow of liquidity.

Sources: Santiment, CoinMarketCap, TradingView