Chainlink Staking Goes Live as LINK Remains Range-Bound
After heightened anticipation for the project by enthusiasts, Chainlink Staking v0.1 has finally launched on the Ethereum mainnet.
Chainlink Staking v0.1 operates in a symbiotic manner, allowing users to earn rewards for staking while, at the same time, bolstering the network’s security. According to a blog post by the blockchain data provider, stakers will be required to “commit LINK tokens in smart contracts to back certain performance guarantees around oracle services.”
Sergey Nazarov on Chainlink Staking
Trumpeting the mutually beneficial properties of the staking project, Sergey Nazarov, co-founder of Chainlink, said in a recent interview:
“What staking does is it allows us to scale the system by creating incentives that allow the system to grow.”
According to Nazarov, the Chainlink network will have facilitated transactions worth over $6.6 trillion in 2022 alone. According to Nazarov, staking is laying the groundwork for what the blockchain describes as "Economics 2.0," their ambition for the protocol to scale and become more efficient by offering the proper incentives.
The inclusion of LINK staking will likely spark an increase in investors' interest in the asset, as many supporters hope to profit from contributing to the network's security.
Chainlink in 2022
Chainlink sure has been a busy bee this year. To better boost interoperability and communication between its network and all blockchain platforms, it declared in September that it was joining forces with SWIFT, the interbank messaging system known for its critical role in international payments.
In September, the project also unveiled "Chainlink Scale," which promises to speed up the development of blockchain networks, and "Chainlink Build," a program that attempts to facilitate the growth of fledgling enterprises in the Chainlink ecosystem.
Chainlink Age Consumed Indicator Shows Increased Movement of Tokens
In other news, reports show that some LINK holders have been pressed to move their holdings.
According to the Chainlink Age Consumed Indicator, over 495 million LINK tokens were moved in a single day. The Age Consumed indicator calculates the number of tokens that changed addresses on a given date by multiplying that number by the amount of time since their last move.
On December 6, approximately 497.3 million tokens were moved. It is worth mentioning that the movement of old tokens typically causes market instability. That said, lower market volatility can be anticipated in the near future, though, as Age Consumed spikes are predicted to decline.
Additionally, LINK witnessed higher exchange inflows of about 176,000 tokens. The decline in price starting on December 1 has been responsible for a persistent increase in inflows.
LINK Price Action
Since its descent to the yearly low of $5.29 in early May, Chainlink appears to have been locked into a sideways pattern. As seen in the daily chart below, the cryptocurrency is restricted to two upper bands, including the $8 area and the $9 mark, and a lower band at $6.
Not surprisingly, the recent launch of the project’s staking program did not make a dent in the price action of the cryptocurrency, which is heading toward the $6 band.
Except for a sustained move above the uppermost or lower bands, LINK is pretty much trapped within the mentioned area. How long do you think this could persist?
LINK Statistics Data
LINK Current Price: $6.83
LINK Market Cap: $3.47B
LINK Circulating Supply: 507.9M
LINK Total Supply: 1B
LINK Market Ranking: #20
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Disclaimer
This article should not be taken as financial advice. It is essential to conduct research before making any investment decisions.
