Chainlink (LINK) Sees 86.8% of Supply in Profit Despite Recent Demand Decline

• Chainlink (LINK) emerges as a top performer in the cryptocurrency market.
• LINK transactions overwhelmingly resulted in profits over the past week.
• “Chainlink ranks third in terms of the highest supply held at a profit,” notes Santiment.

Chainlink (LINK) gains traction, being the third most profitable cryptocurrency after Bitcoin and Ethereum.

LINK’s Prominent Position in the Market

According to the recent data from Santiment, Chainlink (LINK) has established itself as the cryptocurrency with the third-largest supply held in profit, following Bitcoin (BTC) and Ethereum (ETH). This signifies that a substantial portion of LINK’s circulating supply was last moved at prices lower than the current value, highlighting its profitability for current holders.

Market Data Insights

The on-chain data reveals that an impressive 86.8% of Chainlink’s total supply is currently held at a value above its acquisition cost. Comparatively, Bitcoin holds a striking 98.3% of its supply in profit, while Ethereum stands at 95.1%. This underscores LINK’s position as a strong contender in the crypto market, with numerous holders experiencing gains.

LINK Faces Slight Market Retractions

Despite its overall profitable stance, LINK has experienced some setbacks. As of the latest trading report, LINK is valued at $17.49, reflecting a 3% decrease over the past week. This decline is largely attributable to a drop in daily demand, as evidenced by a reduction in the number of active addresses transacting LINK.

Decline in Daily Demand

Data from Santiment indicates that the daily active addresses for LINK trading have dropped by 3% based on a seven-day moving average. Additionally, the creation of new addresses for trading LINK has fallen by 10% in the same period, suggesting a temporary dip in its trade momentum.

Transactional Profitability

However, the slump in LINK’s demand could also be linked to its high transaction profitability ratio. Analysis from COINOTAG shows that for every LINK transaction resulting in a loss, 1.73 transactions yielded a profit over the past week. This profitability might have spurred some selling activity, leading to the observed price dip.

Conclusion

In summary, Chainlink’s current market data demonstrates its strong position within the cryptocurrency landscape, with a significant majority of its supply being profitable. Despite facing brief declines in demand and value, LINK’s overall transactional success continues to make it a notable player. As market dynamics evolve, Chainlink’s robust foundation hints at potential recovery and sustained interest from the crypto community.