chain link [LINK] demystified: set records in both adoption and investor losses

While Chainlink has garnered favorable attention in the crypto space for the potential of its current product, it has disappointing investors who have built the $3.5 billion network.

Chainlink one step forward, two steps back

Chainlink has been integrated with other chains, making the network one of the top chains in the crypto space.

This consolidation has reached practical numbers with Chainlink’s VRF V1+V2, today’s secure on-chain random number generation product, which has served 5.8 million requests since combining.

Chainlink VRF Monthly Requests | Source: Chainlink

In particular, V2 noted rapid adoption in the hands of DeFi protocol developers, taking full advantage of scalable and gas-efficient products to support the development of web3 games and NFTs.

However, as Chainlink achieves this achievement, Chainlink’s losses are aiming to set their own highs. In just one day this month, Chainlink’s total supply of the LINK network recorded 155.34 million LINK, equivalent to a loss of over $1 billion, the highest in a year.

ChainLink LINK 20.10.56 23 May 2022

chain link loss | source: Santiment – ​​AMBCrypto

However, these losses do not hold for Chainlink as the network is observing a gradual gradient in the rate at which LINK changes hands, supporting the fact that LINK holders are not standing still despite deteriorating conditions in the crypto market.

Investor support during a bear market is essential for any chain/asset, and Chainlink is currently receiving such support.

In addition, Chainlink was not at a loss during the first half of this year, as most of the transactions performed on-chain were profitable, unlike other cryptocurrencies.

And even in the case of losses, it wasn’t all that high, except for the May 13 crash.

Nevertheless, this does not exclude the fact that losses persist and harm investors. The average balance of all addresses fell to $11,004, the lowest since December 2018.

ITB link average balance in 2022 05 23T14 40 41.158Z

Chainlink Investor Average Balance | source: Into the Block – AMBCrypto

This is also confirmed by having more than 630,000 Chainlink addresses, of which 81.14% are losing money as of May 2021.

ITB link historical break even price 2022 05 23T14 41 02.594Z

Chainlink investors at a loss | source: Into the Block – AMBCrypto

Unless Chainlink recovers from the 46.38% plunge in May, this slump could continue to worsen and LINK will need to rise more than 10% in seven days to achieve it.

LINKUSD 2022 05 23 20 11 11

Chainlink price action | Source: TradingView – AMBCrypto

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