Interest in ChainLink is at an all-time high, with the cryptocurrency surging at the moment.
Retail Interest in ChainLink Rises
Interest from retail investors in ChainLink is at an all-time high, with more people searching about the cryptocurrency on the Google search engine. ChainLink is becoming popular within the industry because of the services it offers in bridging the gap between cryptocurrency smart contracts and off-chain data feeds.
Data obtained from Google Trends shows that worldwide queries for the word “ChainLink” on its search engine reached a perfect score of 100 last week. This score was more than double what the cryptocurrency recorded in the previous week. With the 100-score, it means that ChainLink has reached the maximum number of searches for a word during a specific time frame.
The increasing retail interest in the ChainLink project could be due to the massive rally of the token in recent weeks. LINK is an ERC-20 token that is used in paying for services on the ChainLink network. The coin surged to a record high of $8.48 on July 13, after rallying by more than 50% last week. Currently, LINK is trading at $7.18 on major cryptocurrency exchanges, which is up by more than 70% for one month and 350% year-to-date.
Cryptos Are Surging
Following the record price rally, ChainLink has become one of the best performing digital currencies so far this year, occupying the eleventh position by market cap. The leading cryptocurrencies in terms of performance so far this year include Aave’s lend protocol, which has experienced massive growth of 900% since the start of the year. Meanwhile, the leading digital currencies, Ethereum, Bitcoin, and the others, are all up so far this year but are lagging behind these leading performers.
The impressive rally by LINK is fueled by the increased usage of ChainLink in the growing decentralized finance (DeFi) space.
The search queries for cryptocurrencies or any other financial instrument usually rises when it is experiencing a price rally. Despite that, it does not always lead to increased participation from the investors. The reason is that retail investors are very cautious about high price volatility.
However, with LINK, the opposite is the case. The number of new addresses and active addresses on the network has increased dramatically alongside the surge in search queries. This means that as the retail interest grows, it is translating into extra buying pressure for the cryptocurrency.
The daily active addresses surged to a 13-month high of 9,263, while new addresses, which represent network growth, has achieved a 12-month high of 4,517 on July 8, according to the data provided by Santiment. Both daily active addresses and new addresses have surged by 800% and 900%, respectively, since the start of the year.
Investors Are Extremely Bullish
While the long-term prospects of the ChainLink project appear very bright, thanks to the continuous multi-year shift in focus from the current base layer protocols to middleware services, the price of the cryptocurrency is in danger of experiencing a price pullback in the short run. This is because the sentiment for the cryptocurrency looks overly bullish at the moment.
Furthermore, “link token” is the leading trending term in cryptocurrency social media space, according to the data obtained from over a thousand social media channels tracked by Santiment. Dino Ibisbegovic, market analyst at Santiment, stated that most times when the name of a coin gets to the top of their list of social gainers/emerging trends, its price declines by roughly 8.2% within the next 12 days.