Chainlink (LINK) has made a sharp 20% recovery from the crash during the past day, as the network has seen a spike in address activity.
Chainlink Has Returned Above $9.8 After Recovery Rally
The cryptocurrency sector had opened the week with a sharp crash, and Chainlink was no exception, as its price had slammed down towards the $8 level after being above the $11 mark during the weekend.
In the past day, the market has seen some respite, but LINK has particularly stood out with a surge of almost 20%, which has taken its price back above $9.8. The below chart shows what the recent trend in the asset has looked like.
Out of the top 20 coins by market cap, only Solana (SOL) and Shiba Inu (INU) rival Chainlink in returns over the last 24 hours. Despite the big jump, though, LINK is still nowhere near making a full recovery from the recent downturn. Nonetheless, the surge would still provide some hope to its investors.
As for the cause behind this recovery rally, perhaps on-chain data could provide some hints.
LINK Daily Active Addresses Has Hit Highest Levels Since May
According to data from the market intelligence platform IntoTheBlock, the LINK network has recently seen a surge in Daily Active Addresses. The “Daily Active Addresses” here refers to an on-chain indicator that keeps track of the number of Chainlink addresses participating in some transaction activity daily. The metric naturally includes both senders and receivers.
The unique number of active addresses on the blockchain can be considered the same as the unique number of users participating in the network activity, so the indicator’s value tells us about the amount of traffic LINK is receiving right now.
When the metric’s value is high, it means a large number of addresses are making moves on the network. Such a trend implies that interest in the asset is high among investors.
On the other hand, the low indicator suggests that few are paying attention to cryptocurrency as there isn’t much trading activity on the chain.
Now, here is a chart that shows the trend in the Daily Active Addresses for Chainlink over the past few months:
The graph shows that Chainlink saw a sharp surge in its Daily Active Addresses alongside the crash, implying that many users became active to make some transfers.
Such a trend isn’t unusual during periods of volatility, with the activity usually corresponding to panic from the investors. This time around, however, things may have been different.
“Interestingly, this surge occurred alongside a general outflow from exchanges, suggesting accumulation during yesterday’s troubled market,” notes IntoTheBlock.
With the latest spike, the Chainlink Daily Active Addresses has reached the highest level since May.
Featured image from Dall-E, IntoTheBlock.com, chart from TradingView.com