Since the Chainlink project was launched, the cumulative transaction volume of the LINK token has exceeded $4 billion.
This was revealed by glassnode in a tweet showing that there has been a real surge starting from July 2019.
Cumulative $LINK on–chain volume has surpassed 4 billion US Dollars. #Chainlink https://t.co/JASxgiremt pic.twitter.com/UF7UXUFab4
— glassnode (@glassnode) January 13, 2020
Actually, from July to date the daily volume of transactions has fallen slightly but is still substantially higher than in the previous period.
It is probably no coincidence that LINK was one of the cryptocurrencies with the best price-performance during 2019, with the current price being almost five times that of a year ago.
Although there are still some doubts about this, it is possible that the two parameters are correlated, with the very sustained increase in trading volumes in July generating a price spike, followed by a period of adjustment.
According to some analysts, this movement could also continue in the coming months, particularly concerning the price in BTC of LINK, which could rise by up to 30%.
In fact, there are those who believe that LINK could make significant gains in the short term with regard to the BTC trading pair, indicating a price target of about 0.000345 BTC.
Chainlink is one of the most interesting companies in the DeFi industry, which is why these optimistic forecasts do not seem unreasonable.
Federico Izzi, a financial analyst and collaborator of The Cryptonomist, points out that in this scenario, if the price of bitcoin were to rise further in the coming days, it could counterbalance a possible increase in the value of LINK, cancelling its growth relative to BTC.
However, until Bitcoin’s halving at the beginning of May, the assumption of a significant increase in the value of LINK against BTC might make sense.
Moreover, as revealed in TokenInsight’s “2019 Cryptocurrency Spot Exchange Industry Annual Report“, 48.29% of all exchange trading volumes surveyed in 2019 concerned Bitcoin itself, with Ethereum in second place.
This means that bitcoin trading volumes are sufficient to unilaterally influence the prices of any BTC trading pair, leaving little leeway to other cryptocurrencies. Only Ethereum appears to have enough volumes to be able to move independently of bitcoin.
