Crypto analyst Aaron Arnold says Chainlink is among projects with huge potential going forward.
Total value secured in the protocol has surpassed $76 billion
Address growth and token accumulation are key indicators of potential growth
In a wide ranging analysis of several top altcoins with the most future potential, the analyst believes growth within the Oracle protocol’s ecosystem could catalyse massive price gains for the LINK token.
As well as Chainlink, Aaron is bullish on Crypto.com (CRO), Injective Protocol (INJ), Sandbox (SAND), and Binance Coin (BNB). He notes these altcoins have been on a roll in terms of network growth, with a fresh upside for the crypto market likely to catapult them to new highs.
Chainlink (LINK) is undervalued
Chainlink’s price has declined almost 20% in the past seven days and currently trades around $28.31. According to CoinGecko, the token has crashed nearly 47% since touching an all-time high of $52.70 on 10 May this year.
Looking at intraday action, LINK is trying to shake off the bears with a 2% upside, though the overall picture is dampened by crypto’s marketwide dips.
Despite this, Arnold says Chainlink has the potential to see sustained price growth. In a YouTube video posted on 18 November, the analyst notes that it would be wrong to write off LINK.
“I don’t think Chainlink is going away anytime soon, especially when you take a look at the ecosystem,” he said.
The analyst says the 16th ranked $13-billion project grew monumentally during the third quarter and that it ranks well above most projects in the same sector of blockchain-based protocols.
#Chainlink saw unprecedented adoption in Q3 of this year.
With over 250 new projects now #PoweredByChainlink—from top dApps to data providers, node operators, and enterprises—the #blockchain ecosystem is realizing the power of oracles for unlocking smart contract innovation. pic.twitter.com/4DjyJS45kV
— Chainlink – Official Channel (@chainlink) November 11, 2021
On 15 November, LINK traded around $34 against the US dollar and on-chain data tracker Santiment revealed that LINK whales took advantage of a price decline to significantly increase their holdings.
? There are currently 64 addresses that hold between 1M and 10M $LINK. In just the last 4 days, these whale wallets have added 1.89% of the #Chainlink supply to their cumulative bags. They’re now up to 18.01% of the total supply, a new #AllTimeHigh held. https://t.co/8xnV848Y5Z pic.twitter.com/y5QtZRDoz0
— Santiment (@santimentfeed) November 15, 2021
Arnold looks at the on-chain stats as indicative of broader growth for Chainlink. He says:
“If you take a look at wallet holders by amount, whether you’re a minnow, a starfish, or a whale, accumulation and distribution of Chainlink continues to increase.”
So where does Arnold see Chainlink going in the future? Up, he suggests as he points to the cryptocurrency’s recent ecosystem growth as an indicator that the native LINK token is undervalued.
The post Chainlink’s ecosystem growth suggests LINK is currently “undervalued”: Analyst appeared first on Coin Journal.