- Chainlink to roll out an upgrade for its Chainlink staking solution.
- Why the upgrade may not necessarily trigger substantial demand for LINK.
Chainlink [LINK] fans might have something to smile about as the network reveals plans to roll out Chainlink Staing V0.2. The announcement may spark some excitement among LINK traders but let’s explore the reasons why.
How many are 1,10,100 LINKs worth today
Chainlink rolled out its initial version dubbed Chainlink Staking V0.1 towards the end of 2022. The launch received an overwhelming response as the staking pool was filled within hours after it made its debut.
The network’s latest announcement revealed that the next iteration of Chainlink staking will feature a 45 million LINK maximum pool size.
Chainlink Staking v0.2 Is Coming
Last December, the Chainlink Staking v0.1 pool filled in less than three hours after General Access opened.
Now, with the v0.2 upgrade on the horizon, Chainlink Staking is being rearchitected into a staking platform with a total pool size of 45M… pic.twitter.com/v6hbF2tr88
— Chainlink (@chainlink) October 19, 2023
Furthermore, the Chainlink Staking V0.2 will feature some upgrades over its previous version such as dynamic rewards, better security, and more staking flexibility. Perhaps the biggest question here is whether it will have an impact on LINK’s demand.
LINK could see a substantial surge in demand once Chainlink Staking V0.2 is rolled out. However, it will likely not have that much of an impact on its price action. This is because most of the price impact on LINK comes from speculative trading.
An impact on LINK’s price action would be more apparent if the Chainlink Staking V0.2 rollout triggers a substantial sentiment shift in the market. The announcement already triggered a sizable spike in social dominance in the last 24 hours. However, market sentiment remains low as indicated by the weighted sentiment which was still close to its four-week lows.
Source: Santiment
LINK price action recap
A long-term descending resistance line underpins LINK’s upper limit while the lower range has been moving along an ascending support. The token’s $7.36 press time price action represented an 11% discount since the start of October after a descending resistance retest.
At press time, LINK was at a crossroads characterized by directional uncertainty. The market showed signs of improvement but macro-economic factors suggested that a liquidity crunch might also be on the cards.
Source: TradingView
Here’s what has been happening amid the uncertainty that could signal where LINK is headed in the short term. On-chain data revealed that the supply of LINK held outside exchanges has been rising in the last four weeks. This indicated that demand has been growing.
Source: Santiment
The growing demand indicated by lower exchange balances does not necessarily indicate a strong bullish presence. Instead, the supply held by top addresses dropped substantially in the second week of October.
Is your portfolio green? Check out the LINK Profit Calculator
The declining supply held by top addresses was a strong indication that whales were contributing to the selling pressure. This may lower LINK’s price since it takes away liquidity.