Chainlink Unveils Data Streams But LINK Price Retracing to $7.0

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Chainlink Unveils Data Streams But LINK Price Retracing to $7.0 – Crypto News

Published

2 years ago

October 3, 2023

Dripp

Oracle service provider Chainlink (LINK) has been one of the top-performing altcoins over the last few weeks shooting past $8 last week. However, the Chainlink party seems to be coming to an end with the LINK price currently under a strong retracement and dropping by another 4% in the last 24 hours.

At press time LINK is trading at $7.60 with a market cap of $4.2 billion. Also, the Chainlink trading volume has shot up by 20% to $370,072,812. During its recent price rally, Chainlink also showed a strong correlation with Bitcoin.

Chainlink On-chain Data and Analysts Expectations

Based on the on-chain data set up after the current bounce, some market analysts have been expecting a correction. This is based on Santiment’s Market Value to Realized Value (MVRV).

The market’s value-to-realized-value ratio, MVRV, serves as a gauge for market tops and bottoms. A high MVRV indicates a potential peak, while lows suggest accumulation phases.

Courtesy: Santiment

Ali Martinez highlights data from @santimentfeed, indicating that when Chainlink’s MVRV 30D exceeded 19% in the past, $LINK experienced significant corrections. Currently, LINK’s MVRV 30D has reached 20%, implying a potential short-term correction before further upward movement.

On the contrary, if the $5.565 level doesn’t provide reliable support, Chainlink’s price may decline further. Thus it will potentially establish a new low and trigger selling pressure below this level. As per popular market analyst Michael van de Poppe, the LINK price could see a further retracement to $7.

#Chainlink will be seeking for a higher low, before finally breaking out of this range.

$7 would be optimal, but I’m not sure whether we’ll be getting that. pic.twitter.com/xbxr7MqaBY

— Michaël van de Poppe (@CryptoMichNL) October 2, 2023

Chainlink Unveils Data Streams

On Monday, October 2, the Web3 services platform Chainlink launched “Data Streams” which aims at reducing network latency. Chainlink Data Streams integrates low-latency market data and automated execution to facilitate the creation of ultra-fast and user-friendly derivatives products. The term “low latency market data” refers to financial market information delivered without significant delays.

This product adopts a “pull-based” data oracle approach, where high-frequency market data is consistently provided off-chain. Oracle reports are generated for each block, allowing users to retrieve them off-chain and subsequently validate them through their on-chain transactions. This differs from the push-based approach in which oracles proactively feed data to smart contracts at varying time intervals.

By utilizing a pull-based system, Chainlink Data Streams mitigates latency issues, reducing the time required for data packets to traverse from one point to another. Latency is a common challenge in distributed networks, as message propagation among nodes often leads to delays in finalizing and synchronizing transactions. Speaking on the development, Chainlink co-founder Sergey Nazarov said:

“Data Streams not only enables DeFi (decentralized finance) protocols to support execution speeds and a user experience that rival centralized exchanges, but to do so without compromising on the core Web3 value of fair, transparent, and decentralized infrastructure”.