The growth of the Ethereum (ETH) and Chainlink (LINK) networks has continued to reach new milestones. This makes it likely that both cryptocurrencies will go up in price in the coming sessions.
According to the statistics of the chain data aggregator Sentiment, an explosion in network activity followed price rallies for both ETH and LINK.
The simultaneous growth of the network, represented by the number of new addresses created daily, supports this bullish narrative. As of February 8, 2021, the number of new daily wallets on the Ethereum and Chainlink networks stood at over 163,000 and 6,700, respectively.
Network activities and prices rise together
According to the chart, these high levels of transactions are not new for ETH. The smart contract platform posted a higher count of 177,000 on December 13, 2020. At the time, this increase was not adequately reflected in price movements. BIC previously reported that an explosion in decentralized finance (DeFi) was responsible for this increase.
Also, the price of ETH has been rising steadily. The same data shows that the smart contract token began to overcome significant price hurdles after December 15, 2020. Since then, the second largest cryptocurrency by market capitalization has seen an increase of more than 170%. Ethereum accomplished this feat in less than 60 days.
Ethereum also recently broke a new all-time high. Market aggregator data CoinGecko show that ETH is currently behind Bitcoin (BTC) in weekly gains.
Both digital assets posted an increase of 19% and 31% in the last seven days, respectively. ETH has broken its previous resistance level and is now at $ 1,800.
Meanwhile, the same can be said for LINK, as these levels are not far from previous records. The number of new wallet addresses on the Oracle-centric network was approximately 10,000 in 2020. This development was seen on August 13, 2020.
Furthermore, on-chain data shows that a meteoric rise in price accompanied this increased network activity. Chainlink broke through strong resistance levels, rising from $ 6 to $ 20 in mid-2020. Market volatility and network activity have been relatively quiet since then.
Corporate investors want ETH and LINK
The entry of institutional investors has contributed greatly to these price changes. In early February, Ethereum surpassed weekly entries for investment giant Grayscale.
An annual Coinbase review can add credibility to this view. Coinbase annual report data indicates that Institutions are waiting at the doors while investors seek inflation hedging.
This also appears to be the case for Chainlink. The wealth gap between whales and regular keepers continues to grow. Only a minority of holders control more than 80% of the LINK in circulation. High net worth individuals and companies are collecting the tokens.
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Ethereum (ETH) and Chainlink (LINK) networks break growth records – BeInCrypto